ASGN Inc (ASGN)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	3,170,600	3,211,500	2,867,100	2,554,900	2,444,100
Payables	US$ in thousands	34,000	35,200	20,100	38,300	39,200
Payables turnover		93.25	91.24	142.64	66.71	62.35

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,170,600K ÷ $34,000K
= 93.25

The payables turnover ratio for ASGN Inc has varied over the past five years, ranging from 71.27 in 2019 to 142.64 in 2021. The ratio measures the efficiency of the company in managing its accounts payable by indicating how many times during a period, on average, the company pays off its suppliers.

A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate good liquidity management and a strong relationship with suppliers. On the other hand, a lower ratio may imply that the company is taking longer to pay its suppliers, potentially indicating cash flow issues or strained supplier relationships.

ASGN Inc's payables turnover ratio of 93.25 in 2023 indicates that the company is efficiently managing its accounts payable, similar to the previous year's ratio of 91.24. This suggests that ASGN Inc is maintaining a consistent pace in paying its suppliers, which can help in maintaining good relationships with them while effectively managing its working capital. It is important for the company to continue monitoring this ratio to ensure that it remains at an optimal level for its operations.