Omnicom Group Inc (OMC)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 29,620,700 | 28,044,600 | 27,002,500 | 28,421,800 | 27,647,200 |
| Total stockholders’ equity | US$ in thousands | 4,193,500 | 3,616,300 | 3,252,100 | 3,270,200 | 3,084,400 |
| Financial leverage ratio | 7.06 | 7.76 | 8.30 | 8.69 | 8.96 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,620,700K ÷ $4,193,500K
= 7.06
The financial leverage ratio of Omnicom Group Inc has been showing a decreasing trend over the past five years. It was 8.96 as of December 31, 2020, and progressively decreased to 7.06 by December 31, 2024. This indicates that the company has been relying less on debt financing relative to its equity over the years. A decreasing trend in the financial leverage ratio suggests a stronger financial position and reduced risk of financial distress, as the company is relying less on borrowed funds to finance its operations and growth. Overall, the decreasing trend in Omnicom Group Inc's financial leverage ratio indicates improving financial stability and a more conservative capital structure in recent years.
Peer comparison
Dec 31, 2024