ASGN Inc (ASGN)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	4,450,600	4,526,900	4,608,000	4,618,900	4,581,100	4,484,500	4,360,400	4,193,500	4,009,500	3,856,100	3,686,700	3,543,700	3,502,100	3,626,900	3,725,200	3,865,600	3,923,900	3,828,400	3,732,100	3,638,300
Property, plant and equipment	US$ in thousands	81,400	78,600	76,100	71,800	66,300	62,300	59,500	58,600	55,000	52,100	54,200	68,300	54,900	74,200	79,200	80,000	73,700	72,600	75,200	77,000
Fixed asset turnover		54.68	57.59	60.55	64.33	69.10	71.98	73.28	71.56	72.90	74.01	68.02	51.88	63.79	48.88	47.04	48.32	53.24	52.73	49.63	47.25

December 31, 2023 calculation

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

ASGN Inc's fixed asset turnover has shown a decreasing trend over the last eight quarters, from a high of 71.29 in Q2 2022 to a low of 54.68 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has been declining over time. A lower fixed asset turnover ratio suggests inefficiency in utilizing fixed assets to generate revenue.

The drop in fixed asset turnover ratio may be driven by a variety of factors such as underutilization of fixed assets, aging fixed assets, or possibly overinvestment in fixed assets relative to sales. It could also indicate that the company has not been effectively managing its fixed assets to generate sufficient revenue.

Management should closely examine the reasons behind the declining fixed asset turnover and take appropriate actions to improve efficiency in utilizing fixed assets. This may involve strategies such as optimizing asset utilization, updating and modernizing fixed assets, or aligning fixed asset investments with revenue generation goals. Regular monitoring and analysis of fixed asset turnover will be crucial in identifying opportunities for improvement and maintaining long-term profitability.