ASGN Inc (ASGN)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		6.00	5.63	5.56	5.61	5.37	5.11	5.17	5.41	5.66	5.53	5.90	5.48	5.81	5.36	6.09	5.66	6.05	5.89	6.00	5.88
DSO	days	60.81	64.87	65.66	65.02	68.01	71.45	70.58	67.53	64.47	66.04	61.85	66.63	62.83	68.08	59.97	64.49	60.34	62.02	60.78	62.07

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.00
= 60.81

DSO, or days sales outstanding, is a crucial ratio that measures the average number of days it takes a company to collect payment after making a sale. In the case of ASGN Inc, the trend in DSO over the past eight quarters indicates a gradual improvement in the collection process.

Looking at the data provided, we observe a consistent decline in DSO from Q4 2022 to Q4 2023. This suggests that ASGN Inc has been more efficient in collecting payments from customers over this period.

Specifically, DSO decreased from 68.01 days in Q4 2022 to 60.81 days in Q4 2023, reflecting a positive trend in collecting receivables more promptly. This improvement in DSO may indicate better credit management, faster invoice processing, or more effective collection efforts by the company.

Overall, the declining trend in DSO for ASGN Inc indicates a positive development in managing accounts receivable and cash flows, which could lead to improved liquidity and financial performance in the future. It is essential for the company to continue monitoring and optimizing its DSO to ensure efficient cash flow management and sustainable growth.