Omnicom Group Inc (OMC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,289,000 | 2,247,900 | 2,206,900 | 2,257,400 | 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 |
| Long-term debt | US$ in thousands | 6,035,300 | 6,930,100 | 6,239,600 | 6,251,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,193,500 | 3,951,300 | 3,635,800 | 3,569,500 | 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 |
| Return on total capital | 22.38% | 20.66% | 22.35% | 22.99% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 exhibited some fluctuations over the analyzed period. The return on total capital was at its highest point in March 2020 at 27.49% before experiencing a decline in the subsequent quarters. The trend continued with a gradual decrease until September 2020, where it stood at 18.81%.
From December 2020 to June 2021, there was a slight recovery seen in the return on total capital, reaching 24.15% in June 2021. The ratio then fluctuated around the mid-20% range until September 2022, peaking at 25.03%. Subsequently, there was a slight decline into December 2022 at 23.47%.
The return on total capital displayed a mixed performance from March 2023 to December 2024, with some fluctuations but generally hovering around the low to mid-20% range. The ratio witnessed a notable peak at 24.32% in September 2023 but saw a slight decrease to 20.66% in September 2024 before recovering to 22.38% in December 2024.
Overall, Omnicom Group Inc's return on total capital has shown variability but generally remained above 20% during the analyzed period. This indicates the company's ability to generate a favorable return on its total capital base, reflecting its operational efficiency and profitability.
Peer comparison
Dec 31, 2024