ASGN Inc (ASGN)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	4.53	1.78	—	2.19	—	1.43	48.12	2.84	3.33	1.43	2.17	2.86
Days of sales outstanding (DSO)	days	57.94	59.81	61.60	60.57	60.81	64.87	65.66	65.02	68.01	71.45	70.58	67.53	64.47	66.04	61.85	66.63	62.83	68.08	59.97	64.49
Number of days of payables	days	3.40	3.15	2.72	3.03	3.91	3.65	2.72	3.82	4.00	3.89	3.90	2.63	2.56	4.19	4.49	4.20	5.47	6.95	5.12	4.46
Cash conversion cycle	days	54.54	56.66	58.88	57.54	56.90	61.23	62.93	61.20	68.54	69.34	66.68	67.08	61.91	63.28	105.48	65.27	60.68	62.56	57.03	62.89

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, which measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown some fluctuations over the analyzed period.

From March 31, 2020, to June 30, 2021, the cash conversion cycle fluctuated within a relatively stable range, ranging from 57.03 to 105.48 days. This period might indicate some operational challenges or changes in the company's working capital management.

Subsequently, from September 30, 2021, to December 31, 2024, the cash conversion cycle demonstrated more stability with fluctuations within a narrower range, between 54.54 to 69.34 days. This indicates improved working capital management or operational efficiency during this period.

Overall, a lower cash conversion cycle is preferred as it indicates faster cash generation from operational activities. ASGN Inc should focus on maintaining or further reducing its cash conversion cycle to enhance its liquidity and operational efficiency in the future.