Omnicom Group Inc (OMC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,339,400 | 4,432,000 | 4,281,800 | 5,316,800 | 5,600,500 |
| Short-term investments | US$ in thousands | 900 | 0 | 60,700 | 0 | 0 |
| Receivables | US$ in thousands | 9,242,000 | 8,659,800 | 8,097,100 | 8,472,500 | 7,813,400 |
| Total current liabilities | US$ in thousands | 16,300,300 | 16,246,000 | 15,052,800 | 16,226,200 | 15,525,100 |
| Quick ratio | 0.83 | 0.81 | 0.83 | 0.85 | 0.86 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,339,400K
+ $900K
+ $9,242,000K)
÷ $16,300,300K
= 0.83
The quick ratio of Omnicom Group Inc has shown a slight decrease over the years, from 0.86 as of December 31, 2020, to 0.85 as of December 31, 2021, further declining to 0.83 as of December 31, 2022. The ratio slightly improved to 0.83 as of December 31, 2023, but then decreased again to 0.81 as of December 31, 2024.
A quick ratio below 1.0 indicates that the company may have difficulties meeting its short-term obligations using its most liquid assets. This trend suggests that Omnicom Group Inc's ability to cover its current liabilities with its quick assets has been weakening over the years. It would be important for the company to closely monitor its liquidity position and consider strategies to improve its quick ratio to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2024