Omnicom Group Inc (OMC)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,289,000 | 2,134,800 | 2,071,900 | 2,132,900 | 1,548,900 |
| Interest expense | US$ in thousands | 247,900 | 218,500 | 208,600 | 236,400 | 221,800 |
| Interest coverage | 9.23 | 9.77 | 9.93 | 9.02 | 6.98 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,289,000K ÷ $247,900K
= 9.23
Omnicom Group Inc's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's improving ability to meet its interest payment obligations. The interest coverage ratio increased from 6.98 in December 2020 to 9.23 in December 2024, with the highest ratio recorded at 9.93 in December 2022.
This upward trend suggests that Omnicom's operating income is increasingly sufficient to cover its interest expenses, reflecting improved financial health and lower risk of defaulting on its debt obligations. Overall, the consistent improvement in the interest coverage ratio demonstrates the company's strong financial position and ability to service its debt effectively.
Peer comparison
Dec 31, 2024