ASGN Inc (ASGN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,099,700 | 4,450,600 | 4,581,100 | 4,009,500 | 3,502,100 |
| Property, plant and equipment | US$ in thousands | 82,600 | 81,400 | 66,300 | 55,000 | 54,900 |
| Fixed asset turnover | 49.63 | 54.68 | 69.10 | 72.90 | 63.79 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,099,700K ÷ $82,600K
= 49.63
Based on the fixed asset turnover ratios provided for ASGN Inc over the five-year period from December 31, 2020, to December 31, 2024, the company's efficiency in generating revenue from its fixed assets has exhibited some fluctuations.
- The fixed asset turnover ratio increased from 63.79 in 2020 to 72.90 in 2021, indicating that the company was able to generate more revenue relative to its investment in fixed assets during that period.
- However, in 2022, the fixed asset turnover ratio decreased to 69.10, suggesting a slight decline in the efficiency of utilizing fixed assets to generate revenue.
- The trend continued in 2023 as the fixed asset turnover ratio further decreased to 54.68, indicating a significant drop in revenue generated per dollar of fixed assets invested.
- By the end of 2024, the fixed asset turnover ratio decreased again to 49.63, reflecting a continued decrease in efficiency in generating revenue from fixed assets.
In conclusion, while ASGN Inc initially improved its efficiency in utilizing fixed assets to generate revenue, this trend showed a declining pattern over the subsequent years. The company may benefit from evaluating its capital allocation strategies to improve its fixed asset turnover efficiency and overall performance.
Peer comparison
Dec 31, 2024