ASGN Inc (ASGN)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	26.68	4.53	5.25	3.33	4.39
Days of sales outstanding (DSO)	days	60.81	68.01	64.47	62.83	69.32
Number of days of payables	days	3.91	4.00	2.56	5.47	5.85
Cash conversion cycle	days	83.58	68.54	67.16	60.68	67.86

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 26.68 + 60.81 – 3.91
= 83.58

Over the past five years, ASGN Inc's cash conversion cycle has fluctuated. In 2023, the company's cash conversion cycle was 56.90 days, indicating that it takes approximately 57 days for ASGN Inc to convert its investments in inventory and other resources into cash from sales. This represents an improvement compared to 2022, when the cash conversion cycle was 64.01 days.

In 2021, the cash conversion cycle was 61.91 days, slightly lower than the previous year, indicating a shorter time to convert assets into cash. In 2020, the company further decreased its cash conversion cycle to 57.63 days, showing efficiency in managing its working capital.

Comparing these figures to 2019, ASGN Inc's cash conversion cycle remained relatively stable, with a slight increase from 56.50 days to 56.90 days in 2023. Overall, the trend in recent years suggests that ASGN Inc has been able to optimize its cash conversion cycle, reflecting effective management of inventory, receivables, and payables to enhance liquidity and operational efficiency.