Omnicom Group Inc (OMC)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,339,400 | 3,533,900 | 2,711,700 | 3,172,800 | 4,432,000 | 2,769,600 | 2,734,100 | 3,261,500 | 4,281,800 | 3,198,500 | 3,205,100 | 3,925,500 | 5,316,800 | 4,431,200 | 4,388,100 | 4,897,300 | 5,600,500 | 3,278,300 | 3,281,000 | 2,692,500 |
| Short-term investments | US$ in thousands | 900 | 1,000 | 800 | 800 | 0 | 0 | 75,900 | 87,400 | 60,700 | 94,900 | 119,900 | 92,700 | 0 | 1,200 | 1,300 | 1,400 | 0 | 0 | 0 | 1,600 |
| Receivables | US$ in thousands | 9,242,000 | 8,570,000 | 8,432,500 | 7,905,800 | 8,659,800 | 7,285,800 | 7,460,100 | 7,062,200 | 8,097,100 | 6,532,300 | 7,043,700 | 7,071,600 | 8,472,500 | 7,186,200 | 7,246,300 | 6,633,200 | 7,813,400 | 6,298,300 | 5,290,800 | 6,690,500 |
| Total current liabilities | US$ in thousands | 16,300,300 | 15,365,700 | 14,957,100 | 14,953,800 | 16,246,000 | 13,019,000 | 13,301,200 | 13,465,100 | 15,052,800 | 12,705,400 | 13,213,700 | 14,177,200 | 16,226,200 | 13,825,200 | 13,701,600 | 13,471,900 | 15,525,100 | 12,163,800 | 11,330,900 | 12,857,000 |
| Quick ratio | 0.83 | 0.79 | 0.75 | 0.74 | 0.81 | 0.77 | 0.77 | 0.77 | 0.83 | 0.77 | 0.78 | 0.78 | 0.85 | 0.84 | 0.85 | 0.86 | 0.86 | 0.79 | 0.76 | 0.73 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A ratio below 1 indicates potential liquidity issues, as it suggests that the company may not be able to cover its current liabilities with its quick assets.
Analyzing the quick ratio of Omnicom Group Inc from March 31, 2020, to December 31, 2024, we observe fluctuations ranging from 0.73 to 0.86. The ratio hovers around the range of 0.70 to 0.80 for most periods, indicating that the company may face challenges in meeting its short-term obligations with its quick assets alone.
Specifically, we notice a slight improvement in the quick ratio from March 31, 2020, to December 31, 2021, where it gradually increased from 0.73 to 0.85. However, the ratio fluctuates in subsequent periods, with intermittent decreases and increases. Notable drops in the quick ratio occur in March 2022 and March 2024, where it falls to 0.78 and 0.74, respectively, before recovering to 0.83 in December 31, 2024.
Overall, the fluctuating quick ratio of Omnicom Group Inc suggests varying levels of liquidity risk over the analyzed period. It is essential for the company to closely monitor and manage its liquidity position to ensure it can effectively meet its short-term obligations as they come due.
Peer comparison
Dec 31, 2024