Omnicom Group Inc (OMC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,289,000 | 2,134,800 | 2,071,900 | 2,132,900 | 1,548,900 |
| Long-term debt | US$ in thousands | 6,035,300 | 5,639,600 | 5,577,200 | 5,685,700 | 5,807,300 |
| Total stockholders’ equity | US$ in thousands | 4,193,500 | 3,616,300 | 3,252,100 | 3,270,200 | 3,084,400 |
| Return on total capital | 22.38% | 23.06% | 23.47% | 23.82% | 17.42% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,289,000K ÷ ($6,035,300K + $4,193,500K)
= 22.38%
Omnicom Group Inc's return on total capital has shown a positive trend over the years, increasing from 17.42% in December 31, 2020 to 22.38% in December 31, 2024. This indicates the company's ability to generate profits relative to the total capital employed in its operations. The company has been efficient in utilizing its capital resources to generate earnings for its stakeholders. Consistently high return on total capital reflects the company's effective management of its assets and investments, which can be an attractive indicator for investors. The slight decrease in 2024 compared to the previous year may require further analysis to understand the factors influencing this change and assess the sustainability of the company's profitability.
Peer comparison
Dec 31, 2024