ASGN Inc (ASGN)

Liquidity ratios

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
Current ratio 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 2.32 2.11 2.14 2.20
Quick ratio 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 2.18 2.03 2.03 2.09
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

ASGN Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has been consistently strong, ranging from 2.22 to 2.47 over the past eight quarters. This indicates that ASGN Inc has more than enough current assets to cover its current liabilities.

Similarly, the quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. ASGN Inc's quick ratio has mirrored its current ratio, ranging from 2.22 to 2.47 over the same period, reaffirming the company's strong liquidity position.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has shown a decline from 1.22 in Q1 2022 to 0.59 in Q4 2023. This decreasing trend may indicate a relative decrease in the company's ability to cover its short-term liabilities with cash on hand alone. However, the cash ratio still remains above 1 in most quarters, suggesting a sufficient level of cash reserves to meet immediate obligations.

Overall, ASGN Inc's liquidity ratios demonstrate a consistently strong liquidity position, with ample current assets to cover short-term liabilities. While the decline in the cash ratio should be monitored, the company's ability to meet its short-term obligations appears robust.

Additional liquidity measure

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 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

The cash conversion cycle of ASGN Inc has shown some variation over the past eight quarters, with figures ranging from a low of 56.90 days in Q4 2023 to a high of 69.40 days in Q3 2022.

The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that a company is efficiently managing its working capital, while a longer cycle may suggest inefficiencies in managing inventory, collecting receivables, or paying suppliers.

Based on the historical data provided, ASGN Inc has generally maintained a cash conversion cycle within the range of 56.90 to 69.40 days, with minor fluctuations between quarters. This suggests that the company has been relatively consistent in managing its working capital and converting its assets into cash, although there may be room for improvement in streamlining its operating cycle to enhance efficiency and liquidity management.

Overall, ASGN Inc's cash conversion cycle analysis indicates a stable and controlled working capital management approach, with potential opportunities to further optimize its cash conversion process for improved financial performance.