ASGN Inc (ASGN)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	3,544,600	3,585,700	3,502,800	3,278,000	2,941,400
Total stockholders’ equity	US$ in thousands	1,892,100	1,901,300	1,865,400	1,587,100	1,376,200
Financial leverage ratio		1.87	1.89	1.88	2.07	2.14

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,544,600K ÷ $1,892,100K
= 1.87

The financial leverage ratio of ASGN Inc has exhibited a fluctuating trend over the past five years, ranging from 1.87 to 2.14. Generally, a financial leverage ratio above 1 indicates that a company relies more on debt to finance its operations than equity.

The decreasing trend from 2.14 in 2019 to 1.87 in 2023 suggests that ASGN Inc has been gradually reducing its reliance on debt financing in relation to equity over the period. The lower ratio indicates a lower level of financial risk associated with the company's capital structure, as it is not as highly leveraged.

A leverage ratio of 1.87 in 2023 may imply that ASGN Inc has been managing its debt levels more effectively compared to the higher ratios observed in 2019 and 2020. This could reflect a more conservative approach to capital structure management, possibly focusing on reducing debt obligations or optimizing its balance of debt and equity for financial stability.

Overall, the downward trend in the financial leverage ratio of ASGN Inc indicates a potential improvement in its financial health and risk management strategies in recent years. However, further analysis of the company's financial statements and industry dynamics would be necessary to fully assess the implications of these changes in leverage ratios.