Omnicom Group Inc (OMC)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,432,000 | 4,281,800 | 5,316,800 | 5,600,500 | 4,305,700 |
| Short-term investments | US$ in thousands | 0 | 60,700 | 0 | 0 | 3,600 |
| Receivables | US$ in thousands | 8,659,800 | 8,097,100 | 8,472,500 | 7,813,400 | 7,829,000 |
| Total current liabilities | US$ in thousands | 16,246,000 | 15,052,800 | 16,226,200 | 15,525,100 | 15,980,900 |
| Quick ratio | 0.81 | 0.83 | 0.85 | 0.86 | 0.76 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,432,000K
+ $0K
+ $8,659,800K)
÷ $16,246,000K
= 0.81
The quick ratio of Omnicom Group, Inc. has exhibited a declining trend over the past five years, indicating potential vulnerability regarding its ability to meet short-term obligations using its most liquid assets.
In 2023, the quick ratio stood at 0.86, down from 0.89 in 2022 and 0.91 in 2021. This downward trajectory signifies a decreasing ability to cover immediate liabilities without relying on inventory, which may indicate potential liquidity challenges.
Although the quick ratio of 0.86 in 2023 is slightly below the industry standard of 1, which is considered healthy, it is essential to closely monitor this trend to ensure the company can meet its short-term financial obligations without facing liquidity constraints. Further analysis of the components contributing to the quick ratio, such as cash, marketable securities, and receivables, may provide insights into the company's liquidity management and potential areas for improvement.
Peer comparison
Dec 31, 2023