ASGN Inc (ASGN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 13.68 | 80.49 | 69.59 | 109.65 | 83.13 |
| Receivables turnover | 6.00 | 5.37 | 5.66 | 5.81 | 5.27 |
| Payables turnover | 93.25 | 91.24 | 142.64 | 66.71 | 62.35 |
| Working capital turnover | 7.68 | 8.50 | 4.67 | 6.06 | 7.58 |
Inventory turnover is missing from the data provided, which indicates that we do not have information on how many times ASGN Inc converted its inventory into sales during the given years.
Receivables turnover ratio measures how efficiently ASGN Inc collects its accounts receivable. The ratio has been relatively stable over the years, ranging from 5.37 to 6.00. A higher ratio is preferable as it indicates faster collection of receivables.
Payables turnover ratio shows how many times ASGN Inc pays its suppliers during the year. The company has shown variation in this ratio, ranging from 71.27 to 142.64, with 2021 being particularly high. A higher ratio indicates that the company is paying its suppliers more frequently.
Working capital turnover measures how efficiently ASGN Inc uses its working capital to generate sales. The ratio has also shown variability over the years, with values ranging from 4.67 to 8.71. A higher ratio suggests better efficiency in utilizing working capital.
Overall, based on the provided data, ASGN Inc has been efficiently managing its receivables and working capital turnover ratios, despite some fluctuations in payables turnover. Further analysis and comparison with industry peers would provide more insights into the effectiveness of ASGN Inc's activity ratios.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 26.68 | 4.53 | 5.25 | 3.33 | 4.39 |
| Days of sales outstanding (DSO) | days | 60.81 | 68.01 | 64.47 | 62.83 | 69.32 |
| Number of days of payables | days | 3.91 | 4.00 | 2.56 | 5.47 | 5.85 |
The activity ratios of ASGN Inc provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.
1. Days of Inventory on Hand (DOH): In the provided data, there are missing values for the Days of Inventory on Hand for each year, which limits a complete analysis of the company's inventory management efficiency. This metric typically measures how many days on average it takes for ASGN Inc to turn its inventory into sales. Without the specific numbers for DOH, it is challenging to assess how effectively the company is managing its inventory levels.
2. Days of Sales Outstanding (DSO): ASGN Inc's Days of Sales Outstanding have shown a decreasing trend from 2019 to 2023. This indicates that the company has been improving its collections process, reducing the average number of days it takes to collect payment from customers. A lower DSO is generally preferable as it signifies faster cash conversion from sales, which is favorable for working capital management.
3. Number of Days of Payables: The Days of Payables for ASGN Inc fluctuated over the years, with a notable increase from 2019 to 2020, followed by a decrease in 2021 and a slight increase in 2023. A lower number of days of payables means the company is paying its suppliers more quickly, which could impact cash flow and supplier relationships. Conversely, a higher number of days of payables could indicate that ASGN Inc is managing its working capital more effectively by delaying payments to suppliers.
Overall, the decreasing trend in Days of Sales Outstanding suggests improved efficiency in collecting receivables, while the fluctuating Days of Payables may indicate varying strategies in managing payables. To get a more comprehensive view of ASGN Inc's activity ratios, it would be beneficial to have the complete data for Days of Inventory on Hand in order to assess the company's overall efficiency in managing its operating cycle.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 54.68 | 69.10 | 72.90 | 63.79 | 46.34 |
| Total asset turnover | 1.26 | 1.28 | 1.14 | 1.07 | 1.16 |
ASGN Inc's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate revenue over the years.
1. Fixed asset turnover: The fixed asset turnover ratio measures the company's ability to generate revenue from its fixed assets. The declining trend in ASGN Inc's fixed asset turnover from 2019 to 2023 suggests a decrease in the efficiency of utilizing fixed assets to generate revenue. However, the ratios are still relatively high, indicating that the company is efficiently utilizing its fixed assets to generate revenue compared to previous years.
2. Total asset turnover: The total asset turnover ratio reflects the company's overall efficiency in generating revenue from all its assets. The fluctuating trend in ASGN Inc's total asset turnover from 2019 to 2023 indicates some variability in asset utilization efficiency. The ratio peaked in 2021 but decreased in 2023. This suggests that the company may have experienced challenges in efficiently converting its total assets into revenue in the most recent year.
In summary, while ASGN Inc has maintained relatively high fixed asset turnover ratios, indicating efficient utilization of fixed assets, the fluctuating total asset turnover ratios suggest some variability in the overall efficiency of revenue generation from all assets. This analysis highlights the importance of monitoring these activity ratios to assess the company's operational efficiency and identify areas for improvement.