ASGN Inc (ASGN)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — 80.49 205.31 178.34 166.75 — 255.65 7.58 128.49 109.65 255.44 168.19 127.63 95.03 266.26 173.74 151.98
Receivables turnover 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 6.05 5.89 6.00 5.88
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
Working capital turnover 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 8.71 9.72 10.07 9.63

ASGN Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.

1. Receivables Turnover:
- The receivables turnover ratio measures how many times a company collects its accounts receivable during a period.
- ASGN Inc's receivables turnover has been relatively stable and ranged between 5.37 and 6.00 over the past eight quarters.
- A higher turnover indicates that the company is efficient in collecting receivables and converting them into cash.

2. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays off its suppliers.
- ASGN Inc's payables turnover has fluctuated significantly, with a range of 91.04 to 134.90 over the same period.
- A higher turnover suggests that the company is able to quickly settle its payables, which could potentially strain relationships with suppliers.

3. Working Capital Turnover:
- The working capital turnover ratio assesses how effectively a company manages its working capital to generate sales.
- ASGN Inc's working capital turnover has varied but generally improved from 4.67 to 8.54 over the past eight quarters.
- A higher turnover indicates that the company is using its working capital efficiently to support sales operations.

In conclusion, ASGN Inc's activity ratios suggest that the company is efficient in managing its receivables and working capital, but may need to focus on optimizing its payables turnover to maintain good relationships with suppliers while managing cash flow effectively.

Average number of days

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
Days of inventory on hand (DOH) days — — — — 4.53 1.78 2.05 2.19 — 1.43 48.12 2.84 3.33 1.43 2.17 2.86 3.84 1.37 2.10 2.40
Days of sales outstanding (DSO) days 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 60.34 62.02 60.78 62.07
Number of days of payables days 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 5.12 3.64 3.33 3.95

Based on the activity ratios provided for ASGN Inc, we can see the following trends:

1. Days of Inventory on Hand (DOH): Unfortunately, the data for this ratio is missing across all quarters, making it challenging to analyze the efficiency of managing inventory.

2. Days of Sales Outstanding (DSO): The DSO ratio indicates the average number of days it takes for ASGN Inc to collect payment after making a sale. The trend shows a slight improvement over the quarters, with a decrease from 68.01 days in Q4 2022 to 60.81 days in Q4 2023. This suggests a positive trend in managing accounts receivable efficiently.

3. Number of Days of Payables: This ratio measures the average number of days it takes ASGN Inc to pay its creditors. The trend indicates some fluctuations in the number of days of payables, with a decrease from 4.00 days in Q4 2022 to 3.91 days in Q4 2023. Generally, a lower number of days of payables can indicate better liquidity management.

Overall, ASGN Inc has shown improvements in managing accounts receivable and paying its creditors more efficiently, which can be positive indicators for the company's working capital management and overall financial health.

Long-term

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
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
Total asset turnover 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 1.33 1.35 1.33 1.29

Long-term activity ratios provide insights into how efficiently a company is utilizing its long-term assets to generate revenue. In the case of ASGN Inc, we can analyze two key ratios: fixed asset turnover and total asset turnover.

1. Fixed Asset Turnover: This ratio measures how effectively the company is using its fixed assets to generate sales. The trend for ASGN Inc's fixed asset turnover is declining over the quarters, from 69.10 in Q4 2022 to 54.68 in Q4 2023. This indicates decreasing efficiency in utilizing fixed assets to generate revenue. A lower fixed asset turnover may imply underutilization or inefficiency in managing fixed assets.

2. Total Asset Turnover: Total asset turnover indicates the efficiency of the company in generating sales relative to all its assets, both fixed and current. ASGN Inc's total asset turnover has shown some fluctuations but has remained relatively stable, ranging between 1.17 and 1.31 over the analyzed quarters. This suggests that the company has been able to generate revenue consistently relative to its total asset base.

Overall, while the fixed asset turnover ratio for ASGN Inc has been decreasing, the total asset turnover ratio has remained relatively stable. It may be beneficial for the company to further investigate the reasons behind the declining fixed asset turnover and implement strategies to improve the efficiency of utilizing fixed assets to generate revenue.