ASGN Inc (ASGN)

Working capital 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
Revenue (ttm)	US$ in thousands	4,450,600	4,526,900	4,608,000	4,618,900	4,581,100	4,484,500	4,360,400	4,193,500	4,009,500	3,856,100	3,686,700	3,543,700	3,502,100	3,626,900	3,725,200	3,865,600	3,923,900	3,828,400	3,732,100	3,638,300
Total current assets	US$ in thousands	973,300	993,900	972,300	926,800	981,100	1,120,000	1,366,300	1,312,400	1,309,400	1,422,200	1,371,600	1,074,200	994,400	934,700	854,600	789,700	791,500	747,100	697,100	691,400
Total current liabilities	US$ in thousands	394,100	443,200	416,600	385,900	441,900	492,300	492,400	439,100	450,900	591,000	498,400	428,900	416,200	389,400	357,300	361,200	340,900	353,400	326,500	313,700
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

December 31, 2023 calculation

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

ASGN Inc's working capital turnover has shown a fluctuating trend over the past year, ranging from a low of 4.67 in Q1 2022 to a high of 8.54 in Q1 2023. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio implies that ASGN is effectively using its working capital to generate sales.

The significant increase in working capital turnover from Q2 2022 to Q1 2023 suggests that ASGN has improved its working capital management practices and is generating more revenue from its working capital. The decreasing trend in Q2 and Q3 of 2023 may signal that ASGN has faced challenges in maintaining or improving its efficiency in utilizing working capital.

Overall, ASGN's working capital turnover ratio indicates that the company has been relatively efficient in generating revenue from its working capital. However, management should continue to monitor and potentially improve this ratio to ensure sustainable growth and profitability.