ASGN Inc (ASGN)

Days of sales outstanding (DSO)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Receivables turnover 6.30 6.00 5.37 5.66 5.81
DSO days 57.94 60.81 68.01 64.47 62.83

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.30
= 57.94

ASGN Inc's days of sales outstanding (DSO) is a measure of how long on average it takes the company to collect payments from its customers after a sale is made. The trend of ASGN Inc's DSO over the past five years shows a slight increase from 62.83 days as of December 31, 2020, to 57.94 days as of December 31, 2024.

A lower DSO indicates a better accounts receivable management and faster cash conversion cycle. The decreasing trend in ASGN Inc's DSO over the period signifies that the company has been more efficient in collecting payments from its customers. This improvement may suggest effective credit policies, better invoice management, or stronger customer relationships.

However, it is essential to note that a very low DSO may also indicate overly strict credit policies that could potentially deter customers. Therefore, ASGN Inc should aim to strike a balance between quick collection of receivables and maintaining good customer relationships to ensure sustainable growth and profitability.