ASGN Inc (ASGN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | 80.49 | 205.31 | — | 166.75 | — | 255.65 | 7.58 | 128.49 | 109.65 | 255.44 | 168.19 | 127.63 |
| Receivables turnover | 6.30 | 6.10 | 5.93 | 6.03 | 6.00 | 5.63 | 5.56 | 5.61 | 5.37 | 5.11 | 5.17 | 5.41 | 5.66 | 5.53 | 5.90 | 5.48 | 5.81 | 5.36 | 6.09 | 5.66 |
| Payables turnover | 107.21 | 115.74 | 134.36 | 120.50 | 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 |
| Working capital turnover | 7.45 | 8.32 | 8.16 | 7.78 | 7.68 | 8.22 | 8.29 | 8.54 | 8.50 | 7.14 | 4.99 | 4.80 | 4.67 | 4.64 | 4.22 | 5.49 | 6.06 | 6.65 | 7.49 | 9.02 |
The inventory turnover ratio for ASGN Inc has fluctuated over the years, ranging from 7.58 to 255.65. This indicates varying efficiency in managing and selling inventory during different periods.
The receivables turnover ratio has remained relatively stable around the range of 5.00 to 6.30. This suggests that ASGN Inc typically collects payments from customers within a consistent timeframe.
On the other hand, the payables turnover ratio has shown some fluctuations, with values ranging from 52.51 to 142.64. This reflects changes in the company's management of its accounts payable and supplier credit terms.
The working capital turnover ratio for ASGN Inc has generally shown a decreasing trend over the years, signaling a decline in how efficiently the company is utilizing its working capital to generate sales revenue.
Overall, analyzing these activity ratios provides insights into the operational efficiency and effectiveness of ASGN Inc in managing its inventory, receivables, payables, and working capital.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | 4.53 | 1.78 | — | 2.19 | — | 1.43 | 48.12 | 2.84 | 3.33 | 1.43 | 2.17 | 2.86 |
| Days of sales outstanding (DSO) | days | 57.94 | 59.81 | 61.60 | 60.57 | 60.81 | 64.87 | 65.66 | 65.02 | 68.01 | 71.45 | 70.58 | 67.53 | 64.47 | 66.04 | 61.85 | 66.63 | 62.83 | 68.08 | 59.97 | 64.49 |
| Number of days of payables | days | 3.40 | 3.15 | 2.72 | 3.03 | 3.91 | 3.65 | 2.72 | 3.82 | 4.00 | 3.89 | 3.90 | 2.63 | 2.56 | 4.19 | 4.49 | 4.20 | 5.47 | 6.95 | 5.12 | 4.46 |
ASGN Inc's activity ratios, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the company's efficiency in managing its inventory, collecting receivables, and paying off its payables.
1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days, on average, ASGN Inc holds its inventory before selling it. A lower DOH indicates that the company efficiently manages its inventory by quickly converting it into sales.
- ASGN Inc's DOH fluctuated over the periods provided, ranging from as low as 1.43 days to as high as 48.12 days. The significant increase to 48.12 days in June 2021 may suggest possible operational challenges or a change in inventory management practices.
- Overall, the company should aim to maintain a consistent and low DOH to ensure optimal inventory turnover and reduce carrying costs.
2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects how long it takes for ASGN Inc to collect its accounts receivable. A lower DSO indicates faster collection of outstanding payments, improving cash flow and liquidity.
- ASGN Inc's DSO ranged from around 57 to 71 days during the periods provided. The trend shows minor fluctuations, with a slight decrease in DSO observed towards the end of the period.
- The company should continue monitoring and managing its DSO to ensure timely collection of receivables and efficient cash management.
3. Number of Days of Payables:
- The number of days of payables ratio indicates how long ASGN Inc takes to pay off its trade payables. A higher number suggests the company is taking longer to settle its obligations, potentially benefiting from extended payment terms.
- ASGN Inc's payables days ranged from around 2 to 7 days, with some fluctuations over the periods provided. The decrease in payables days towards the end of the period may indicate improved efficiency in managing payables.
- The company should strike a balance between maximizing payment terms to improve cash flow while maintaining good relationships with suppliers.
In conclusion, ASGN Inc should focus on optimizing its inventory management, enhancing receivables collection efficiency, and maintaining a balanced approach to managing payables to improve overall operational effectiveness and financial performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 49.63 | 52.89 | 54.04 | 52.72 | 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 |
| Total asset turnover | 1.20 | 1.22 | 1.24 | 1.25 | 1.26 | 1.26 | 1.29 | 1.31 | 1.28 | 1.24 | 1.24 | 1.20 | 1.14 | 1.06 | 1.07 | 1.06 | 1.07 | 1.13 | 1.22 | 1.28 |
ASGN Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate revenue.
1. Fixed Asset Turnover: The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales. ASGN Inc's fixed asset turnover ratio has shown a general decreasing trend from March 31, 2020, to December 31, 2024, indicating a decline in the efficiency of using fixed assets to generate revenue. However, the ratio has fluctuated over the years but has mostly remained above 50, suggesting that the company has been relatively efficient in utilizing its fixed assets.
2. Total Asset Turnover: The total asset turnover ratio evaluates how efficiently the company is using all its assets to generate sales. ASGN Inc's total asset turnover ratio has fluctuated over the years but has generally shown a slight decrease from 1.28 on March 31, 2020, to 1.20 on June 30, 2022, and has stabilized around 1.20 since then. This indicates that the company is generating slightly less revenue per dollar of total assets compared to earlier years but has maintained a relatively stable efficiency in asset utilization.
Overall, while there have been fluctuations in the activity ratios of ASGN Inc, the company has shown a reasonable level of efficiency in utilizing its assets to generate revenue, despite a slight decline in performance over the years. Further analysis and comparison with industry peers may provide additional insights into the company's asset management strategies.