Omnicom Group Inc. — Earnings Quality Grade F
OMC · Communication Services
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 89 days (215 → 304)
AR growth 55.8% exceeds revenue growth 10.1%
Revenue 10.1%, CFFO 69.5%. Cash follows revenue
Expense Quality
Inventory growth 110.1% exceeds COGS 23.8%
CapEx growth 6.5% vs revenue 10.1%. Normal
SG&A/Gross Profit = 50.8%. Normal
Gross margin swung -10.1pp (18.6% → 8.5%)
Cash Flow Quality
CFFO/NI = -53.91. Below 1.0
FCF $2.8B, FCF/NI = -51.16
Accruals ratio = -5.5%. Low accruals
Cash $6.9B covers 64% of debt $10.7B
Balance Sheet Health
Goodwill+Intangibles $23.7B = 197% of equity. Over 50%
Debt/EBITDA = 13.1x (>4x). Interest coverage = 1.7x (<2x). Financial stress
Other assets grew 177.3% vs revenue 10.1%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 112% YoY
Manipulation Score
M-Score = -1.64 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10