GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Omnicom Group Inc (LTS:0KBK) » Definitions » Gross Margin %

Omnicom Group (LTS:0KBK) Gross Margin % : 19.85% (As of Dec. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Omnicom Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Omnicom Group's Gross Profit for the three months ended in Dec. 2024 was $858 Mil. Omnicom Group's Revenue for the three months ended in Dec. 2024 was $4,322 Mil. Therefore, Omnicom Group's Gross Margin % for the quarter that ended in Dec. 2024 was 19.85%.


The historical rank and industry rank for Omnicom Group's Gross Margin % or its related term are showing as below:

LTS:0KBK' s Gross Margin % Range Over the Past 10 Years
Min: 16.57   Med: 18.45   Max: 19.52
Current: 18.64


During the past 13 years, the highest Gross Margin % of Omnicom Group was 19.52%. The lowest was 16.57%. And the median was 18.45%.

LTS:0KBK's Gross Margin % is ranked worse than
79.73% of 972 companies
in the Media - Diversified industry
Industry Median: 39.29 vs LTS:0KBK: 18.64

Omnicom Group had a gross margin of 19.85% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Omnicom Group was 1.00% per year.


Omnicom Group Gross Margin % Historical Data

The historical data trend for Omnicom Group's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Omnicom Group Gross Margin % Chart

Omnicom Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.57 19.52 18.76 18.44 18.64

Omnicom Group Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.09 17.18 17.69 19.60 19.85

Competitive Comparison of Omnicom Group's Gross Margin %

For the Advertising Agencies subindustry, Omnicom Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Omnicom Group's Gross Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Omnicom Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Omnicom Group's Gross Margin % falls into.


;
;

Omnicom Group Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Omnicom Group's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=2924.4 / 15689.1
=(Revenue - Cost of Goods Sold) / Revenue
=(15689.1 - 12764.7) / 15689.1
=18.64 %

Omnicom Group's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=857.9 / 4322.2
=(Revenue - Cost of Goods Sold) / Revenue
=(4322.2 - 3464.3) / 4322.2
=19.85 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Omnicom Group  (LTS:0KBK) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Omnicom Group had a gross margin of 19.85% for the quarter that ended in Dec. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Omnicom Group Gross Margin % Related Terms

Thank you for viewing the detailed overview of Omnicom Group's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Omnicom Group Business Description

Traded in Other Exchanges
Address
280 Park Avenue, New York, NY, USA, 10017
Omnicom is a holding company that owns several advertising agencies and related firms. It provides traditional and digital advertising services that include creative design, market research, data analytics, and ad placement. In addition, Omnicom provides outsourced public relations and other communications services. The firm operates globally, providing services in more than 70 countries; it generates more than half of its revenue in North America and nearly 30% in Europe. The firm announced plans to merge with Interpublic Group in December 2024, pending regulatory approval.

Omnicom Group Headlines

No Headlines