ASGN Inc (ASGN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	95,200	67,500	40,100	35,600
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	340,900	353,400	326,500	313,700
Cash ratio		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	0.28	0.19	0.12	0.11

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($175,900K + $—K) ÷ $394,100K
= 0.45

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

ASGN Inc's cash ratio has fluctuated over the past eight quarters, ranging from 0.27 to 1.22. In Q4 2023, the cash ratio stood at 0.59, showing an improvement from the previous quarter's 0.43. While the current ratio is below the levels seen in Q2 and Q1 of 2022, it is higher than Q4 2022.

The declining trend from the high of 1.22 in Q1 2022 to the low of 0.27 in Q1 2023 may indicate a decreased ability to cover short-term liabilities with cash. However, the recent uptick in Q4 2023 suggests a partial recovery in liquidity.

Overall, ASGN Inc's cash ratio has shown volatility, and investors may want to further evaluate the company's cash management and liquidity position to assess its ability to weather short-term financial challenges.