ASGN Inc (ASGN)

Liquidity ratios

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
Current ratio 2.50 2.25 2.34 2.51 2.47 2.24 2.33 2.40 2.22 2.28 2.77 2.99 2.90 2.41 2.75 2.50 2.39 2.40 2.39 2.19
Quick ratio 2.05 2.04 2.19 2.38 2.33 2.14 2.21 2.30 2.09 2.21 2.71 2.91 2.75 2.33 2.01 2.41 2.11 2.33 2.29 2.07
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

ASGN Inc's current ratio has shown a generally increasing trend from 2.19 as of March 31, 2020, to 2.50 as of March 31, 2021, with some fluctuations thereafter. A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities, and the ratio has consistently remained above 2, indicating a strong ability to meet short-term obligations.

The quick ratio, which measures the company's ability to pay off its current liabilities without relying on inventory, also showed a similar upward trend from 2.07 as of March 31, 2020, to 2.75 as of December 31, 2021, before fluctuating slightly in subsequent periods. The consistently high quick ratios reflect ASGN Inc's strong liquidity position and ability to meet short-term obligations using its most liquid assets.

On the other hand, the cash ratio, which focuses specifically on the company's ability to cover its current liabilities with its available cash and cash equivalents, showed some fluctuations over the periods but generally remained at healthy levels above 1. A cash ratio above 1 indicates that the company can cover its current liabilities solely with its cash holdings, and ASGN Inc has demonstrated a solid cash position throughout the analyzed periods.

Overall, based on the liquidity ratios, ASGN Inc appears to have a strong liquidity position, with ample current assets to cover its short-term obligations, a high level of liquid assets relative to current liabilities, and a healthy cash reserve to meet immediate payment needs.

Additional liquidity measure

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 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

The cash conversion cycle of ASGN Inc has been somewhat fluctuating over the past few years. The cycle represents the average number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to June 30, 2021, there was a decreasing trend in the cash conversion cycle, indicating that the company was managing its working capital efficiently and taking less time to convert its resources into cash.

However, from June 30, 2021, to September 30, 2022, there was an upward trend in the cash conversion cycle, reaching its peak at 105.48 days on June 30, 2021. This increase might suggest that the company was taking longer to convert its resources into cash flows, which could potentially indicate issues with managing inventory, receivables, or payables.

From September 30, 2022, to December 31, 2024, there was a decreasing trend in the cash conversion cycle, showing improvements in working capital management. The cycle decreased from 69.34 days on September 30, 2022, to 54.54 days on December 31, 2024, suggesting that ASGN Inc was becoming more efficient in converting its resources into cash.

Overall, fluctuations in the cash conversion cycle can provide insights into the company's liquidity, efficiency of operations, and effectiveness in managing working capital. Investors and analysts closely monitor this metric to assess a company's financial health and operational efficiency.