Omnicom Group Inc (OMC)

Omnicom Group, Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.19 to 0.21. This suggests that Omnicom maintains a healthy balance between debt and assets, with approximately 19% to 21% of its assets financed by debt.

The debt-to-capital ratio, measuring the proportion of debt relative to total capital, has fluctuated slightly between 0.61 and 0.65 over the same period. This indicates that around 61% to 65% of Omnicom's capital structure is composed of debt, while the rest is financed through equity.

The debt-to-equity ratio has shown a decreasing trend from 1.80 in 2019 to 1.56 in 2023. This ratio indicates the extent to which the company relies on debt financing compared to equity. A lower debt-to-equity ratio suggests a lower level of financial risk and a stronger equity base to support operations.

Lastly, the financial leverage ratio, which measures the proportion of assets financed by debt relative to equity, has also shown a decreasing trend from 9.38 in 2019 to 7.76 in 2023. This suggests that Omnicom has reduced its reliance on debt financing to support its assets over the years.

Overall, the solvency ratios of Omnicom Group, Inc. demonstrate a prudent financial management approach, maintaining a balanced mix of debt and equity to support its long-term obligations.

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Coverage ratios

Omnicom Group, Inc.'s interest coverage ratio has shown an improving trend over the last five years. The ratio has increased from 11.55 in 2019 to 19.88 in 2023, indicating the company's ability to cover its interest expenses with its operating income has strengthened. This improvement suggests that Omnicom Group's profitability and operational efficiency have been on a positive trajectory, enabling the company to easily service its debt obligations. The consistent growth in the interest coverage ratio reflects a lower financial risk for the company and a higher capacity to manage its debt. These figures demonstrate that Omnicom Group, Inc. has been effectively managing its interest expenses relative to its operating earnings.