ASGN Inc (ASGN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.87% | 28.76% | 29.90% | 28.49% | 27.05% |
| Operating profit margin | 7.42% | 8.18% | 8.94% | 8.75% | 8.03% |
| Pretax margin | 5.86% | 6.69% | 7.96% | 12.26% | 7.54% |
| Net profit margin | 4.27% | 4.93% | 5.85% | 10.22% | 5.72% |
ASGN Inc's profitability ratios show a mixed performance over the five-year period from 2020 to 2024.
1. Gross Profit Margin: ASGN's gross profit margin has shown a steady increase from 27.05% in 2020 to 28.87% in 2024. This indicates that the company has been able to improve its efficiency in generating revenue after deducting the costs directly associated with production.
2. Operating Profit Margin: The operating profit margin fluctuated during the period, starting at 8.03% in 2020, peaking at 8.94% in 2022, and then declining to 7.42% in 2024. This suggests that ASGN has faced challenges in controlling its operating expenses compared to its gross profit.
3. Pre-tax Margin: The pre-tax margin experienced significant variability, jumping from 7.54% in 2020 to 12.26% in 2021, before dropping to 5.86% in 2024. This erratic trend indicates fluctuations in the company's ability to manage its pre-tax earnings relative to its total revenue.
4. Net Profit Margin: ASGN's net profit margin followed a downward trajectory from 5.72% in 2020 to 4.27% in 2024. This decline suggests that the company's bottom line profitability has weakened over the five-year period, possibly indicating challenges in controlling other expenses such as interest and taxes.
In summary, while ASGN Inc has shown improvements in its gross profit margin, the declining trend in operating profit, pre-tax, and net profit margins highlight potential issues in cost management and efficiency that may require further analysis and strategic interventions to enhance overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.88% | 10.27% | 11.42% | 10.02% | 8.58% |
| Return on assets (ROA) | 5.11% | 6.19% | 7.48% | 11.70% | 6.11% |
| Return on total capital | 10.83% | 12.43% | 13.84% | 18.25% | 11.60% |
| Return on equity (ROE) | 9.86% | 11.59% | 14.10% | 21.97% | 12.62% |
ASGN Inc's profitability ratios show positive trends over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) improved steadily from 8.58% in 2020 to 11.42% in 2022, indicating that the company's operational efficiency in generating profits from its assets increased over time.
2. Return on assets (ROA) exhibited volatility, with a peak of 11.70% in 2021 but declining to 5.11% in 2024. This ratio measures how effectively the company is earning profits from its total assets, and the fluctuation suggests varying levels of asset utilization or profitability.
3. Return on total capital also showed an upward trend, from 11.60% in 2020 to 13.84% in 2022, before decreasing slightly to 10.83% in 2024. This ratio reflects the company's ability to generate returns for all providers of capital, including both equity and debt holders.
4. Return on equity (ROE) followed a similar pattern to ROA, peaking at 21.97% in 2021 and then declining to 9.86% in 2024. ROE indicates the profitability of the company from the perspective of its shareholders, reflecting how efficiently the company is utilizing equity to generate profits.
Overall, ASGN Inc's profitability ratios demonstrate improvements in operating efficiency and capital utilization over the period, although there are fluctuations in ROA and ROE that may indicate changing financial performance dynamics.