ASGN Inc (ASGN)

Payables 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
Cost of revenue (ttm)	US$ in thousands	3,170,600	3,211,700	3,256,300	3,249,500	3,211,500	3,141,300	3,067,400	2,968,200	2,867,100	2,786,600	2,689,600	2,595,400	2,554,900	2,631,000	2,674,200	2,756,900	2,793,900	2,715,900	2,640,900	2,568,400
Payables	US$ in thousands	34,000	32,100	24,300	34,000	35,200	33,500	32,800	21,400	20,100	32,000	33,100	29,900	38,300	50,100	37,500	33,700	39,200	27,100	24,100	27,800
Payables turnover		93.25	100.05	134.00	95.57	91.24	93.77	93.52	138.70	142.64	87.08	81.26	86.80	66.71	52.51	71.31	81.81	71.27	100.22	109.58	92.39

December 31, 2023 calculation

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

ASGN Inc's payables turnover ratio has fluctuated over the past eight quarters, ranging from a low of 91.04 in Q2 2022 to a high of 134.90 in Q1 2022. The average payables turnover ratio over this period is approximately 104.01.

A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a given period. This can be a positive sign as it may reflect efficient management of payables and strong relationships with suppliers. On the other hand, a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships or indicate cash flow challenges.

Overall, the trend in ASGN Inc's payables turnover ratio shows some variability but generally remains at a healthy level, with occasional peaks and troughs. It is essential for the company to continue monitoring and managing its payables effectively to sustain good relationships with suppliers and ensure optimal cash flow management.