Omnicom Group Inc (OMC)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.13% | 13.02% | 14.58% | 15.38% | 10.00% |
| Operating profit margin | 14.50% | 14.33% | 14.58% | 15.38% | 12.14% |
| Pretax margin | 13.01% | 13.04% | 13.04% | 13.27% | 10.08% |
| Net profit margin | 9.44% | 9.47% | 9.21% | 9.85% | 7.18% |
Omnicom Group Inc has shown a positive trend in its profitability ratios over the past five years. The gross profit margin has improved from 10.00% in December 2020 to 14.13% in December 2024, indicating an increase in the efficiency of the company's cost management and pricing strategies.
Similarly, the operating profit margin has also shown growth, starting at 12.14% in December 2020 and reaching 14.50% by December 2024. This indicates that the company has been able to control its operating expenses while increasing its revenues.
The pretax margin has generally remained stable over the five-year period, fluctuating only slightly between 10.08% in December 2020 and 13.01% in December 2024. This suggests that Omnicom Group Inc has been effective in managing its tax obligations and other costs.
Furthermore, the net profit margin, which reflects the company's bottom-line profitability, has improved from 7.18% in December 2020 to 9.44% in December 2024. This indicates that Omnicom Group Inc has been successful in generating profit after accounting for all expenses, including taxes and interest.
Overall, the profitability ratios of Omnicom Group Inc demonstrate a positive trend, showcasing the company's ability to effectively manage its costs, optimize its operations, and generate healthy profits over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.68% | 7.50% | 7.72% | 7.73% | 5.78% |
| Return on assets (ROA) | 5.00% | 4.96% | 4.88% | 4.95% | 3.42% |
| Return on total capital | 22.38% | 23.06% | 23.47% | 23.82% | 17.42% |
| Return on equity (ROE) | 35.31% | 38.48% | 40.48% | 43.05% | 30.65% |
Omnicom Group Inc's profitability ratios have shown a generally positive trend over the past five years.
- Operating Return on Assets (Operating ROA) has increased from 5.78% in December 31, 2020, to 7.68% in December 31, 2024, indicating the company's ability to generate operating profits from its assets has improved.
- Return on Assets (ROA) has also experienced a growth trajectory, rising from 3.42% in December 31, 2020, to 5.00% in December 31, 2024. This indicates that the company has become more efficient in generating profits from its total assets.
- Return on Total Capital has shown a similar increasing trend, from 17.42% in December 31, 2020, to 22.38% in December 31, 2024, demonstrating the company's ability to generate returns for both equity and debt holders.
- Return on Equity (ROE) has exhibited a consistent growth pattern as well, increasing from 30.65% in December 31, 2020, to 35.31% in December 31, 2024. This illustrates the company's ability to generate higher returns for its shareholders over the years.
Overall, Omnicom Group Inc's profitability ratios indicate an improving financial performance and efficiency in utilizing its assets and capital to generate returns for its stakeholders.