Omnicom Group Inc (OMC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,289,000 | 2,247,900 | 2,206,900 | 2,257,400 | 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 |
| Interest expense (ttm) | US$ in thousands | 247,900 | 235,500 | 222,600 | 217,400 | 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 |
| Interest coverage | 9.23 | 9.55 | 9.91 | 10.38 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,289,000K ÷ $247,900K
= 9.23
The interest coverage ratio of Omnicom Group Inc has shown a relatively stable trend over the past several quarters. The ratio has ranged between 6.86 and 10.38 during the period from March 31, 2020, to December 31, 2024. This indicates that the company has consistently generated sufficient operating income to cover its interest expenses.
Overall, the interest coverage ratio has averaged around 8.5 over the period, suggesting that Omnicom Group Inc has a comfortable buffer to meet its interest obligations. A ratio above 1 indicates that the company is able to pay its interest charges from its operating income. The consistent and healthy interest coverage ratio reflects the company's ability to manage its debt effectively and indicates a lower risk of default on its debt obligations.
Peer comparison
Dec 31, 2024