Omnicom Group Inc (OMC)

Solvency ratios

	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
Debt-to-assets ratio	0.20	0.24	0.23	0.23	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
Debt-to-capital ratio	0.59	0.64	0.63	0.64	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
Debt-to-equity ratio	1.44	1.75	1.72	1.75	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
Financial leverage ratio	7.06	7.29	7.52	7.64	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

The solvency ratios of Omnicom Group Inc indicate its ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets that are financed by debt. Omnicom's debt-to-assets ratio has remained relatively stable around 0.20 to 0.25 over the past few years. This indicates that the company relies on debt for around 20-25% of its total assets, which signifies a healthy balance between debt and assets.

2. Debt-to-capital ratio: This ratio measures the percentage of the company's capital structure that is financed by debt. Omnicom's debt-to-capital ratio has shown a decreasing trend over the years, from around 0.70 in 2020 to 0.59 in 2024. This suggests that the company is reducing its reliance on debt financing and moving towards a more equity-based capital structure.

3. Debt-to-equity ratio: This ratio compares the amount of debt to the amount of equity in the company's capital structure. Omnicom's debt-to-equity ratio has fluctuated between 1.44 to 2.37 over the period analyzed. A decreasing trend in this ratio indicates that the company is relying less on debt and more on equity to finance its operations.

4. Financial leverage ratio: This ratio measures the extent to which the company uses debt to finance its assets. Omnicom's financial leverage ratio has also shown a decreasing trend over the years, indicating a reduction in the company's reliance on debt financing. A lower financial leverage ratio suggests a lower risk of financial distress.

Overall, Omnicom Group Inc's solvency ratios demonstrate a prudent approach to managing its long-term financial obligations by maintaining a balanced mix of debt and equity in its capital structure while gradually reducing its reliance on debt financing over time.

Coverage ratios

	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
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

Omnicom Group Inc's interest coverage ratio has shown a relatively stable trend over the observed periods from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest obligations on its debt.

The interest coverage ratio for Omnicom Group Inc ranged from a low of 6.86 in June 30, 2020, to a high of 10.38 in March 31, 2024. Generally, a higher interest coverage ratio indicates a company's stronger ability to cover its interest expenses with its operating income.

Overall, Omnicom Group Inc's interest coverage ratio has been consistently above 1, indicating that the company has been able to meet its interest obligations comfortably. The upward trend in the interest coverage ratio from 2020 to 2024 suggests an improvement in the company's ability to cover its interest expenses over time. It is important for investors and creditors to monitor this ratio to assess the company's financial health and its ability to manage its debt obligations effectively.