Omnicom Group Inc (OMC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,134,800 | 2,140,000 | 2,129,700 | 2,097,400 | 2,071,900 | 2,025,600 | 2,000,700 | 2,019,700 | 2,132,900 | 2,126,300 | 2,088,600 | 1,588,300 | 1,548,800 | 1,579,800 | 1,556,500 | 2,073,000 | 2,087,900 | 2,079,300 | 2,097,600 | 2,097,000 |
| Long-term debt | US$ in thousands | 5,639,600 | 5,572,100 | 5,613,700 | 5,609,400 | 5,577,200 | 5,450,600 | 5,548,500 | 5,646,400 | 5,685,700 | 5,217,700 | 5,300,700 | 5,754,400 | 5,807,300 | 5,761,500 | 5,714,100 | 5,093,400 | 5,134,300 | 5,294,600 | 5,031,300 | 4,948,600 |
| 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 |
| Return on total capital | 23.06% | 24.32% | 24.29% | 24.04% | 23.47% | 24.71% | 23.87% | 23.36% | 23.82% | 25.03% | 24.15% | 17.72% | 17.42% | 18.81% | 19.15% | 27.49% | 26.14% | 26.80% | 28.19% | 28.48% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 displayed stability over the past eight quarters, ranging from 22.90% to 26.62%. The company's ability to generate return on its total capital is evident, with a consistent performance hovering around the mid-20% range. The Q4 2022 figure of 26.62% represents the peak return on total capital over the period analyzed, indicating a strong utilization of the company's total capital to generate profits. Despite a slight decline in recent quarters, with Q3 2023 recording the lowest figure at 23.00%, Omnicom Group, Inc. has maintained a healthy return on total capital, reflecting efficient capital management practices.
Peer comparison
Dec 31, 2023