ASGN Inc (ASGN)

Cash ratio

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
Cash and cash equivalents US$ in thousands 205,200 166,600 132,200 158,400 175,900 145,600 93,800 65,000 70,300 211,200 490,600 502,400 529,600 679,400 375,400 386,500 274,400 229,700 207,900 64,000
Short-term investments US$ in thousands -105,000 -30,800 — — — — — — — — — — — — — — — — — —
Total current liabilities US$ in thousands 367,100 403,600 390,100 371,700 394,100 443,200 416,600 385,900 441,900 492,300 492,400 439,100 450,900 591,000 498,400 428,900 416,200 389,400 357,300 361,200
Cash ratio 0.27 0.34 0.34 0.43 0.45 0.33 0.23 0.17 0.16 0.43 1.00 1.14 1.17 1.15 0.75 0.90 0.66 0.59 0.58 0.18

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($205,200K + $-105,000K) ÷ $367,100K
= 0.27

The cash ratio of ASGN Inc has exhibited fluctuations over the periods provided. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.

From March 31, 2020, to September 30, 2021, the cash ratio consistently increased from 0.18 to 1.15, indicating an improvement in the company's liquidity position. This signifies that ASGN Inc had more than enough cash to cover its short-term obligations during this period.

However, from December 31, 2021, to March 31, 2024, the cash ratio fluctuated within a range from 0.16 to 0.45, suggesting a less stable liquidity position compared to the previous period. This could indicate potential changes in the company's cash management practices or financial strategy.

Overall, a cash ratio above 1 is generally considered healthy as it indicates the company can cover all its current liabilities with its cash on hand. ASGN Inc experienced a peak cash ratio of 1.17 on December 31, 2021, indicating strong liquidity at that point. It is important for the company to closely monitor its cash ratio to ensure it maintains a healthy level of liquidity to meet its short-term obligations.