ASGN Inc (ASGN)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 2,916,000 3,170,600 3,211,500 2,867,100 2,554,900
Payables US$ in thousands 27,200 34,000 35,200 20,100 38,300
Payables turnover 107.21 93.25 91.24 142.64 66.71

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,916,000K ÷ $27,200K
= 107.21

Based on the data provided for ASGN Inc, the payables turnover ratio has shown some variability over the years. The payables turnover ratio measures how efficiently a company manages its accounts payable by indicating how many times during a period the company pays off its average accounts payable balance.

The payables turnover ratio for ASGN Inc has fluctuated over the years, increasing from 66.71 in December 31, 2020, to a peak of 142.64 in December 31, 2021. This significant increase in 2021 indicates that the company was able to pay off its accounts payable balance much more frequently compared to the previous year. However, the ratio then decreased to 91.24 in December 31, 2022, and slightly increased to 93.25 in December 31, 2023, and further to 107.21 in December 31, 2024.

The overall trend suggests that ASGN Inc has been managing its accounts payable efficiently, with the ratio generally staying at relatively high levels. A higher payables turnover ratio typically indicates that the company is able to pay off its suppliers more quickly, which can be viewed positively as it may signal strong financial health and good supplier relationships. However, the fluctuations in the ratio over the years may warrant further investigation into the company's payment policies and supplier relationship management.