ASGN Inc (ASGN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 26.68 | 4.53 | 5.25 | 3.33 |
| Days of sales outstanding (DSO) | days | 57.94 | 60.81 | 68.01 | 64.47 | 62.83 |
| Number of days of payables | days | 3.40 | 3.91 | 4.00 | 2.56 | 5.47 |
| Cash conversion cycle | days | 54.54 | 83.58 | 68.54 | 67.16 | 60.68 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 57.94 – 3.40
= 54.54
The cash conversion cycle of ASGN Inc has shown fluctuations over the years based on the provided data. In December 31, 2020, the company's cash conversion cycle was 60.68 days, indicating that it takes approximately 60.68 days for ASGN to convert its investments in inventory and other resources into cash flows.
By December 31, 2021, the cash conversion cycle increased to 67.16 days, suggesting a slight delay in the conversion process. This trend continued in 2022, with the cycle further increasing to 68.54 days.
However, in December 31, 2023, there was a significant spike in the cash conversion cycle to 83.58 days, indicating a prolonged period for ASGN to convert its resources into cash.
The following year, December 31, 2024, saw a notable improvement with the cycle decreasing to 54.54 days, showing a more efficient cash conversion process compared to the previous year.
Overall, the trend in ASGN Inc's cash conversion cycle reflects variability in the efficiency of managing its operating cycle and liquidity position over the years.
Peer comparison
Dec 31, 2024