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