ASGN Inc (ASGN)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	4.53	1.78	2.05	2.19	—	1.43	48.12	2.84	3.33	1.43	2.17	2.86	3.84	1.37	2.10	2.40
Days of sales outstanding (DSO)	days	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	60.34	62.02	60.78	62.07
Number of days of payables	days	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	5.12	3.64	3.33	3.95
Cash conversion cycle	days	56.90	61.23	62.93	61.20	68.54	69.34	68.73	67.08	61.91	63.28	105.48	65.27	60.68	62.56	57.03	62.89	59.06	59.75	59.55	60.52

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 60.81 – 3.91
= 56.90

The cash conversion cycle of ASGN Inc has displayed fluctuations throughout the quarters provided. In Q4 2023, the company's cash conversion cycle was 56.90 days, showing an improvement compared to the previous quarter. This indicates that ASGN Inc was able to more efficiently convert its investments in inventory and accounts receivable into cash during this period.

Although there was a slight increase in the cash conversion cycle in Q3 and Q2 2023, it remained relatively stable around 61-63 days, suggesting that the company's operations were consistent in managing its cash flow during these quarters.

Comparing the latest data to the same quarter in the previous year, ASGN Inc showed a notable improvement in its cash conversion cycle in Q4 2023, as it decreased from 64.01 days to 56.90 days. This reflects the company's effectiveness in optimizing its working capital management practices over the year.

Overall, ASGN Inc's cash conversion cycle has demonstrated fluctuations but generally seems to be well-managed, with the company making efforts to enhance operational efficiency and liquidity management.