Omnicom Group Inc (OMC)

Current ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total current assets US$ in thousands 15,384,200 14,613,000 15,909,500 15,590,100 14,584,700
Total current liabilities US$ in thousands 16,246,000 15,052,800 16,226,200 15,525,100 15,980,900
Current ratio 0.95 0.97 0.98 1.00 0.91

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $15,384,200K ÷ $16,246,000K
= 0.95

Omnicom Group, Inc.'s current ratio has shown a slight decreasing trend over the past five years, from 0.91 in 2019 to 0.95 in 2023. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets, such as cash, accounts receivable, and inventory.

While a current ratio below 1.0 may raise concerns about the company's liquidity position, it is important to note that a current ratio of around 1.0 is considered acceptable in certain industries. However, investors and creditors typically prefer a higher current ratio, as it suggests that the company has more current assets relative to its current liabilities, providing a greater cushion to cover short-term obligations.

In Omnicom Group's case, the decreasing current ratio trend over the years may prompt stakeholders to closely monitor the company's ability to manage its working capital effectively and ensure it has sufficient liquidity to meet its short-term debts. Further analysis of the company's cash flow position and working capital management practices may provide additional insights into the factors influencing the current ratio dynamics.


Peer comparison

Dec 31, 2023

Company name
Symbol
Current ratio
Omnicom Group Inc
OMC
0.95
Interpublic Group of Companies Inc
IPG
1.06