Omnicom Group Inc (OMC)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,134,800 | 2,071,900 | 2,132,900 | 1,548,900 | 2,087,800 |
| Long-term debt | US$ in thousands | 5,639,600 | 5,577,200 | 5,685,700 | 5,807,300 | 5,134,300 |
| Total stockholders’ equity | US$ in thousands | 3,616,300 | 3,252,100 | 3,270,200 | 3,084,400 | 2,853,900 |
| Return on total capital | 23.06% | 23.47% | 23.82% | 17.42% | 26.14% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,134,800K ÷ ($5,639,600K + $3,616,300K)
= 23.06%
Omnicom Group, Inc.'s return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 23.98%, slightly lower than the previous year's 24.89%. Despite this slight decrease, the company's return on total capital remains relatively strong compared to 2020 and 2021 when it was 21.02% and 24.04% respectively. The highest return on total capital was seen in 2019 at 26.56%. Overall, Omnicom Group, Inc. has demonstrated consistent performance in generating returns on its total capital in recent years, indicating effective utilization of both debt and equity to generate profits.
Peer comparison
Dec 31, 2023