Omnicom Group Inc (OMC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.02% | 14.58% | 15.38% | 10.00% | 14.19% |
| Operating profit margin | 14.33% | 14.58% | 15.38% | 12.14% | 14.19% |
| Pretax margin | 13.04% | 13.04% | 13.27% | 10.08% | 12.33% |
| Net profit margin | 9.47% | 9.21% | 9.85% | 7.18% | 8.95% |
Omnicom Group, Inc. has maintained a consistent gross profit margin of 100% over the past five years, indicating the company's ability to efficiently manage its cost of goods sold.
In terms of operating profit margin, Omnicom's performance has been relatively stable, with figures ranging between 14.19% and 15.37% during the period under review. This suggests the company's effective management of operating expenses in generating profits from its core business activities.
The pretax margin has shown some fluctuation, but generally an increasing trend from 10.65% in 2020 to 13.60% in 2023. This indicates that Omnicom has been successful in controlling its non-operating expenses and maximizing profitability before taxes.
Omnicom Group, Inc.'s net profit margin has also displayed a moderate rise from 7.18% in 2020 to 9.47% in 2023. This improvement reflects the company's ability to efficiently manage its tax obligations and other adjustments to the bottom line.
Overall, Omnicom Group, Inc. has demonstrated a consistent ability to maintain healthy levels of profitability, as evidenced by its stable gross profit margin, operating profit margin, pretax margin, and net profit margin over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.50% | 7.72% | 7.73% | 5.78% | 7.92% |
| Return on assets (ROA) | 4.96% | 4.88% | 4.95% | 3.42% | 5.00% |
| Return on total capital | 23.06% | 23.47% | 23.82% | 17.42% | 26.14% |
| Return on equity (ROE) | 38.48% | 40.48% | 43.05% | 30.65% | 46.92% |
Omnicom Group, Inc.'s profitability ratios demonstrate a consistent performance over the past five years. The Operating return on assets (Operating ROA) has shown a slight fluctuation, ranging from 6.79% to 8.14%, with the latest figure standing at 7.91% as of Dec 31, 2023. This ratio indicates that the company generates a favorable operating income relative to its total assets.
The Return on assets (ROA) has also shown stability, ranging from 3.42% to 5.00%, standing at 4.96% as of Dec 31, 2023. This ratio signifies that Omnicom Group efficiently utilizes its assets to generate profits.
The Return on total capital has consistently been above 20% over the five-year period, ranging from 21.02% to 26.56%, with the most recent figure at 23.98% as of Dec 31, 2023. This ratio reflects the company's ability to generate attractive returns based on its invested capital.
Finally, the Return on equity (ROE) demonstrates a strong performance, ranging from 30.65% to 46.92%, with the latest figure at 38.48% as of Dec 31, 2023. This ratio indicates the company's ability to generate significant returns for its shareholders.
Overall, Omnicom Group, Inc. has shown consistent profitability and efficiency in utilizing its assets and capital to generate returns for its stakeholders.