ASGN Inc (ASGN)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,450,600	4,581,100	4,009,500	3,502,100	3,415,600
Receivables	US$ in thousands	741,500	853,600	708,200	602,800	648,700
Receivables turnover		6.00	5.37	5.66	5.81	5.27

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,450,600K ÷ $741,500K
= 6.00

Over the past five years, ASGN Inc's receivables turnover ratio has shown a consistent trend, fluctuating within a relatively narrow range. The ratio has averaged around 5.75 times during this period, indicating that, on average, ASGN collects its accounts receivable approximately 5.75 times per year.

The gradual increase in receivables turnover from 2019 to 2020 was followed by a slight decrease in 2021, although the ratio remained relatively stable. The significant improvement in the ratio in 2023, reaching 6 times turnover, suggests that the company has become more efficient in collecting its outstanding receivables compared to previous years.

A higher receivables turnover ratio typically signifies a shorter collection period, indicating that ASGN Inc is collecting its outstanding receivables more quickly. This may be a positive indicator of the company's credit policies, efficiency in managing accounts receivable, or the quality of its customers. It also implies that ASGN Inc has less cash tied up in accounts receivable, which can positively impact the company's cash flow and liquidity position.

Overall, the consistent performance of ASGN Inc's receivables turnover ratio over the years, with an improvement in 2023, suggests that the company has been effective in managing its accounts receivable and maintaining a healthy cash flow cycle.