ASGN Inc (ASGN)

Short-term

Turnover ratios

ASGN Inc's inventory turnover ratio has shown fluctuations over the years, decreasing from 109.65 in December 2020 to 13.68 in December 2023 before being unavailable for December 2024. This declining trend may indicate potential inefficiencies in managing and selling inventory.

On the other hand, the receivables turnover ratio remained relatively stable overall, with a slight increase from 5.81 in December 2020 to 6.30 in December 2024. This suggests that the company efficiently collects payments from its customers.

For payables turnover, ASGN Inc's performance improved significantly from 66.71 in December 2020 to 107.21 in December 2024. This indicates that the company is taking longer to pay its creditors, potentially improving its cash flow and operating cycle efficiency.

Lastly, the working capital turnover ratio fluctuated over the years, decreasing from 6.06 in December 2020 to 4.67 in December 2021 before rebounding to 7.45 in December 2024. This indicates varying levels of efficiency in utilizing working capital to generate sales revenue.

Overall, ASGN Inc's activity ratios suggest mixed performance in managing inventory, receivables, payables, and working capital effectively over the analyzed period.

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Average number of days

ASGN Inc's activity ratios provide insights into how efficiently the company manages its operations and resources.

1. Days of Inventory on Hand (DOH):
- ASGN Inc's DOH has fluctuated over the years, ranging from 3.33 days in 2020 to 26.68 days in 2023.
- An increase in DOH from 2020 to 2023 indicates that the company may have been carrying excess inventory, potentially tying up working capital.
- However, the DOH has improved in 2024 as data is not available, suggesting a potential positive development in inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- ASGN Inc's DSO has shown a relatively stable trend, with a slight decrease from 62.83 days in 2020 to 57.94 days in 2024.
- A lower DSO indicates that the company is collecting receivables more quickly, improving cash flow and liquidity.
- The decreasing trend in DSO is a positive sign of effective credit management and customer payment collection.

3. Number of Days of Payables:
- ASGN Inc's days of payables have fluctuated slightly over the years, ranging from 2.56 days in 2021 to 5.47 days in 2020.
- A lower number of days of payables implies that the company is paying its suppliers more quickly, which can improve supplier relationships.
- Overall, the company has been managing its payables efficiently with fluctuations within a relatively narrow range over the years.

In summary, ASGN Inc's activity ratios indicate that the company has made improvements in managing inventory levels and receivables turnover while maintaining an efficient payables cycle. The trends suggest a focus on optimizing working capital management and enhancing operational efficiency.

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Long-term

ASGN Inc's long-term activity ratios show the efficiency of the company in utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures how efficiently the company generates sales revenue from its investment in fixed assets. ASGN Inc's fixed asset turnover has been consistently high over the years, with a slight decline in recent years. The ratio decreased from 72.90 in 2021 to 49.63 in 2024. This indicates that the company may be generating slightly less revenue from its fixed assets in recent years.

2. Total Asset Turnover: This ratio assesses the efficiency of the company in generating sales from all its assets. ASGN Inc's total asset turnover has shown an increasing trend from 1.07 in 2020 to 1.20 in 2024. This implies that the company has been able to generate more sales revenue relative to its total assets, indicating improved efficiency in asset utilization over the years.

Overall, while the fixed asset turnover has shown a decline, the total asset turnover has been relatively stable and even slightly improving, suggesting that ASGN Inc has been effective in utilizing its assets to generate revenue, albeit with a potential need for attention to the efficiency of its fixed asset utilization.