ASGN Inc (ASGN)

Working capital 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
Total current assets	US$ in thousands	973,300	981,100	1,309,400	994,400	791,500
Total current liabilities	US$ in thousands	394,100	441,900	450,900	416,200	340,900
Working capital turnover		7.68	8.50	4.67	6.06	7.58

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,450,600K ÷ ($973,300K – $394,100K)
= 7.68

Based on the data provided for ASGN Inc, the working capital turnover ratio has fluctuated over the past five years. The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate revenue. A higher ratio indicates that the company is efficiently using its working capital to generate sales.

In this case, the working capital turnover ratio decreased from 2019 to 2020, then increased in 2021, only to decrease again in 2022 and 2023. This fluctuation could indicate varying levels of efficiency in managing working capital over the years. It may be important for analysts to further investigate the reasons behind the fluctuations in the working capital turnover ratio to better understand the company's financial performance and efficiency in generating revenue.

Overall, the trend in the working capital turnover ratio for ASGN Inc suggests some variability in how effectively the company is utilizing its working capital to support its operations and generate sales revenue over the period analyzed.