ASGN Inc (ASGN)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,450,600	4,581,100	4,009,500	3,502,100	3,415,600
Property, plant and equipment	US$ in thousands	81,400	66,300	55,000	54,900	73,700
Fixed asset turnover		54.68	69.10	72.90	63.79	46.34

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,450,600K ÷ $81,400K
= 54.68

Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales.

Analyzing ASGN Inc's fixed asset turnover ratio over the past five years, we observe a fluctuating trend. The ratio stood at 54.68 in 2023, showing a slight decrease from the previous year. Despite this decrease, the ratio remains relatively high, implying that ASGN Inc is still efficient in generating revenue from its fixed assets.

In 2022 and 2021, the company's fixed asset turnover ratios were notably high at 69.10 and 72.90, respectively, indicating a strong performance in utilizing fixed assets to drive sales. This suggests effective management of fixed assets in generating revenue during those years.

In comparison, the ratios for 2020 and 2019 were 56.93 and 53.24, respectively. Although slightly lower than the more recent years, these ratios still suggest a reasonable level of efficiency in utilizing fixed assets to generate revenue.

Overall, ASGN Inc has demonstrated a general trend of maintaining a healthy fixed asset turnover ratio, signifying effective utilization of its fixed assets to drive sales revenue over the past five years.