Omnicom Group Inc (OMC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,104,700 | 2,083,300 | 2,197,900 | 1,598,800 | 2,122,300 |
| Total assets | US$ in thousands | 28,044,600 | 27,002,500 | 28,421,800 | 27,647,200 | 26,783,400 |
| Operating ROA | 7.50% | 7.72% | 7.73% | 5.78% | 7.92% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,104,700K ÷ $28,044,600K
= 7.50%
Operating ROA measures the efficiency of Omnicom Group, Inc. in generating operating income from its assets. Over the past five years, the company's operating ROA has shown fluctuations, ranging from a low of 6.79% in 2020 to a high of 8.14% in 2022. The downward trend in 2021 was followed by a modest increase in 2023, reaching 7.91%. This indicates that, on average, for every dollar of assets the company owns, it generated approximately 7.91 cents in operating income in 2023. While the figures suggest a generally stable performance in utilizing assets to generate operating profits, there was a slight dip in 2021. Further analysis into the company's asset management and operational efficiency may provide insights into the reasons behind these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023