Omnicom Group Inc (OMC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,480,600 | 1,391,400 | 1,316,500 | 1,407,800 | 945,400 |
| Total stockholders’ equity | US$ in thousands | 4,193,500 | 3,616,300 | 3,252,100 | 3,270,200 | 3,084,400 |
| ROE | 35.31% | 38.48% | 40.48% | 43.05% | 30.65% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,480,600K ÷ $4,193,500K
= 35.31%
Omnicom Group Inc's return on equity (ROE) has shown a positive trend over the past five years. Starting at 30.65% on December 31, 2020, the ROE increased to 43.05% by December 31, 2021, indicating a significant improvement in profitability.
Although there was a slight decrease in ROE to 40.48% by December 31, 2022, the metric remained at a relatively high level, reflecting the company's ability to generate strong returns on shareholders' equity.
By December 31, 2023, the ROE stood at 38.48%, showing a minor decline from the previous year. However, the company continued to outperform the industry average in terms of profitability.
As of December 31, 2024, Omnicom Group Inc's ROE decreased further to 35.31%, signaling a potential challenge in maintaining the same level of profitability seen in the previous years. It is essential for the company to evaluate its operational efficiency and financial management to sustain healthy returns for its shareholders.
Peer comparison
Dec 31, 2024