Omnicom Group Inc (OMC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.61 | 0.63 | 0.63 | 0.65 | 0.64 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,639,600K ÷ ($5,639,600K + $3,616,300K)
= 0.61
The debt-to-capital ratio of Omnicom Group, Inc. has shown a slight decreasing trend over the past five years, indicating improved financial leverage and capital structure efficiency. The ratio declined from 0.64 in 2019 to 0.61 in 2023. This suggests that the company has been successful in reducing its reliance on debt financing in relation to its total capital. A decreasing debt-to-capital ratio is generally viewed positively by investors and creditors as it signifies lower financial risk and healthier overall financial condition. Omnicom Group's management may have focused on strengthening the balance sheet by reducing debt levels or increasing equity capital during the period under review.
Peer comparison
Dec 31, 2023