Omnicom Group Inc (OMC)
Debt-to-equity 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-equity ratio | 1.56 | 1.71 | 1.74 | 1.88 | 1.80 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,639,600K ÷ $3,616,300K
= 1.56
Omnicom Group, Inc.'s debt-to-equity ratio has shown a decreasing trend over the past five years, indicating a relative improvement in the company's solvency and financial risk management. The ratio decreased from 1.80 in 2019 to 1.56 in 2023. This suggests that the company has reduced its reliance on debt financing in relation to equity, which is generally viewed positively by investors and creditors. However, it is essential to consider the industry norms and specific circumstances of the company when assessing the adequacy of the debt-to-equity ratio. Overall, the decreasing trend in Omnicom Group, Inc.'s debt-to-equity ratio reflects a strengthening financial position in terms of leverage and capital structure.
Peer comparison
Dec 31, 2023