Omnicom Group Inc (OMC)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,391,400 | 1,395,500 | 1,388,100 | 1,370,200 | 1,316,500 | 1,302,900 | 1,294,000 | 1,293,800 | 1,407,800 | 1,389,700 | 1,347,400 | 975,000 | 945,300 | 962,200 | 939,100 | 1,334,000 | 1,339,100 | 1,323,300 | 1,332,000 | 1,325,500 |
| Total stockholders’ equity | US$ in thousands | 3,616,300 | 3,228,800 | 3,153,500 | 3,116,600 | 3,252,100 | 2,746,700 | 2,833,200 | 2,999,700 | 3,270,200 | 3,279,000 | 3,348,800 | 3,211,200 | 3,084,400 | 2,638,800 | 2,413,000 | 2,447,600 | 2,853,900 | 2,464,100 | 2,410,200 | 2,413,300 |
| ROE | 38.48% | 43.22% | 44.02% | 43.96% | 40.48% | 47.44% | 45.67% | 43.13% | 43.05% | 42.38% | 40.24% | 30.36% | 30.65% | 36.46% | 38.92% | 54.50% | 46.92% | 53.70% | 55.27% | 54.92% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,391,400K ÷ $3,616,300K
= 38.48%
To analyze Omnicom Group, Inc.'s return on equity (ROE) based on the provided data:
1. Trend Analysis:
- Omnicom Group's ROE has shown a varying trend over the past eight quarters, ranging from 38.48% to 47.44%.
- There is no consistent increasing or decreasing trend in ROE over this period.
2. Volatility:
- The ROE values have fluctuated within a relatively narrow range, with the highest ROE recorded at 47.44% in Q3 2022 and the lowest at 38.48% in Q4 2023.
3. Average ROE:
- The average ROE over the eight quarters is approximately 43.53%.
- This indicates that, on average, Omnicom Group has been generating a return of 43.53% for each unit of equity during this period.
4. Comparison to Industry Peers:
- To further assess the performance of Omnicom Group, it would be beneficial to compare its ROE with industry peers to determine if the company's ROE is competitive within the advertising and marketing services sector.
In conclusion, Omnicom Group, Inc.'s ROE has shown variation over the past eight quarters, with no clear trend. The average ROE of 43.53% suggests that the company has been effectively utilizing its equity to generate returns, but further analysis and comparison with industry peers would provide a more comprehensive understanding of its performance.
Peer comparison
Dec 31, 2023