Omnicom Group Inc (OMC)

Solvency ratios

	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
Debt-to-assets ratio	0.20	0.22	0.22	0.22	0.21	0.23	0.22	0.22	0.20	0.20	0.21	0.22	0.21	0.24	0.25	0.22	0.19	0.22	0.20	0.20
Debt-to-capital ratio	0.61	0.63	0.64	0.64	0.63	0.66	0.66	0.65	0.63	0.61	0.61	0.64	0.65	0.69	0.70	0.68	0.64	0.68	0.68	0.67
Debt-to-equity ratio	1.56	1.73	1.78	1.80	1.71	1.98	1.96	1.88	1.74	1.59	1.58	1.79	1.88	2.18	2.37	2.08	1.80	2.15	2.09	2.05
Financial leverage ratio	7.76	7.75	7.95	8.10	8.30	8.79	8.79	8.72	8.69	7.80	7.66	7.98	8.96	9.01	9.38	9.67	9.38	9.60	10.39	10.45

Omnicom Group, Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.22, reflecting that only about 22% of the company's assets are financed by debt. This suggests that Omnicom has a strong asset base to cover its debt obligations.

The debt-to-capital ratio, which measures the proportion of debt in the company's capital structure, has also been consistent at around 0.64. This indicates that debt accounts for approximately 64% of Omnicom's total capital, implying moderate leverage.

The debt-to-equity ratio has shown some fluctuation but generally hovers around 1.8, highlighting that the company relies significantly on debt financing compared to equity. This could potentially indicate higher financial risk, as a higher ratio suggests more financial leverage.

Furthermore, the financial leverage ratio has trended downwards, from 8.79 in Q1 2022 to 7.75 in Q3 2023. This suggests that Omnicom has been reducing its reliance on debt to finance its operations over the analyzed period.

Overall, while Omnicom's solvency ratios indicate a stable financial position with manageable levels of debt, the slight fluctuations in some ratios suggest the need for continued monitoring to ensure long-term financial stability and sustainability.

Coverage ratios

	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
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

Omnicom Group, Inc.'s interest coverage has shown a consistent upward trend over the past eight quarters, indicating the company's improving ability to meet its interest obligations. The interest coverage ratio has increased from 10.55 in Q1 2022 to 19.88 in Q4 2023, reflecting a significant improvement in the company's financial health and stability. This suggests that Omnicom Group, Inc. is generating sufficient operating income to comfortably cover its interest expenses, providing a favorable outlook for creditors and investors. Overall, the company's interest coverage ratio demonstrates strong financial performance and efficient management of debt obligations.