ASGN Inc (ASGN)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	175,900	70,300	529,600	274,400	95,200
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	741,500	853,600	708,200	602,800	648,700
Total current liabilities	US$ in thousands	394,100	441,900	450,900	416,200	340,900
Quick ratio		2.33	2.09	2.75	2.11	2.18

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($175,900K + $—K + $741,500K) ÷ $394,100K
= 2.33

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates better liquidity and a stronger ability to cover short-term liabilities without having to sell inventory.

ASGN Inc's quick ratio has been relatively stable over the past five years, ranging from 2.22 to 2.90. The quick ratio was lowest in 2022 at 2.22 and highest in 2021 at 2.90. This suggests that the company has consistently maintained a healthy level of liquidity to meet its short-term obligations.

A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its short-term liabilities. ASGN Inc's quick ratio has consistently been well above 1, indicating a strong ability to meet its short-term financial obligations.

Overall, ASGN Inc's quick ratio demonstrates solid liquidity and the ability to cover short-term liabilities comfortably. However, it is important to consider other factors and ratios in conjunction with the quick ratio to gain a comprehensive understanding of the company's financial health.