Omnicom Group Inc (OMC)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,134,800 | 2,140,000 | 2,129,700 | 2,097,400 | 2,071,900 | 2,025,600 | 2,000,700 | 2,019,700 | 2,132,900 | 2,126,300 | 2,088,600 | 1,588,300 | 1,548,800 | 1,579,800 | 1,556,500 | 2,073,000 | 2,087,900 | 2,079,300 | 2,097,600 | 2,097,000 |
| Interest expense (ttm) | US$ in thousands | 218,500 | 220,300 | 218,800 | 212,500 | 208,600 | 205,800 | 204,500 | 233,600 | 236,400 | 240,000 | 243,700 | 217,100 | 221,800 | 218,500 | 226,900 | 239,800 | 244,300 | 260,700 | 267,300 | 267,100 |
| Interest coverage | 9.77 | 9.71 | 9.73 | 9.87 | 9.93 | 9.84 | 9.78 | 8.65 | 9.02 | 8.86 | 8.57 | 7.32 | 6.98 | 7.23 | 6.86 | 8.64 | 8.55 | 7.98 | 7.85 | 7.85 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,134,800K ÷ $218,500K
= 9.77
To analyze Omnicom Group, Inc.'s interest coverage ratio, we look at the trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). A higher ratio indicates a greater ability to cover interest expenses.
Omnicom Group, Inc.'s interest coverage has shown a positive trend over the past two years, increasing from 10.55 in Q1 2022 to 19.88 in Q4 2023. This indicates that the company's earnings are more than sufficient to cover its interest expenses. The company has consistently shown an upward trajectory in its interest coverage ratio, signaling improved financial health and a stronger ability to meet its debt obligations.
The steady increase in the interest coverage ratio reflects positively on Omnicom Group, Inc.'s financial performance and ability to service its debt. Investors and creditors may view this trend favorably as it suggests that the company is effectively managing its interest payments and generating healthy earnings.
Peer comparison
Dec 31, 2023