ManpowerGroup Inc (MAN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 3.89 | 3.85 | 3.80 | 3.65 | 3.96 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 24.35 | 19.33 | 32.20 | 9.06 | 10.23 |
Looking at ManpowerGroup's activity ratios, we can analyze the efficiency of the company in managing its resources and generating revenue.
Receivables turnover has been relatively stable over the years, indicating that the company is efficient in collecting payments from its customers. The slight fluctuations in this ratio suggest that ManpowerGroup has been consistent in managing its accounts receivable effectively.
Payables turnover has also shown consistency over the years, with a slight decrease in 2021. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, which can be seen as a positive sign of financial health.
Working capital turnover has shown significant variability, with a notable increase in 2021 compared to the previous years. This suggests that ManpowerGroup has been able to generate more revenue for each dollar of working capital invested. The sharp increase in 2021 could indicate improved efficiency in utilizing its working capital.
In conclusion, ManpowerGroup has demonstrated efficiency in managing its receivables and payables over the years. The fluctuation in working capital turnover suggests varying levels of operational efficiency, with the company showing a substantial improvement in 2021.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 93.72 | 94.87 | 96.16 | 99.87 | 92.12 |
| Number of days of payables | days | — | — | — | — | — |
Days of inventory on hand (DOH) for ManpowerGroup are not provided in the table, which limits our ability to assess how efficiently the company manages its inventory.
Days of sales outstanding (DSO) have been fluctuating over the past five years, with a slight decrease in 2023 compared to 2022. DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A higher DSO indicates slower collection of accounts receivable, potentially signaling inefficiencies in the company's credit and collection policies.
Number of days of payables measures how long a company takes to pay its suppliers or creditors. ManpowerGroup's payables period has been increasing over the years, with a significant jump in 2023 compared to 2022. This may suggest that the company is taking longer to pay its bills, which could be seen as a positive in terms of managing cash flow.
Overall, a detailed analysis of these activity ratios suggests that ManpowerGroup may need to focus on managing its accounts receivable more efficiently to improve cash flow and working capital management. Additionally, monitoring the company's inventory turnover and payables period can provide insights into how effectively it is managing its resources and relationships with suppliers.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 144.82 | 176.16 | 177.06 | 132.89 | 145.80 |
| Total asset turnover | 2.13 | 2.16 | 2.10 | 1.92 | 2.27 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. ManpowerGroup's fixed asset turnover has shown a decreasing trend over the past five years, with the ratio decreasing from 145.61 in 2019 to 145.59 in 2020, and then fluctuating between 133.24 and 177.43 in the subsequent years. This indicates that the company may not be generating as much revenue from its fixed assets as efficiently in recent years compared to the previous years.
On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all of its assets. ManpowerGroup's total asset turnover has also shown some fluctuations, ranging from 1.93 in 2020 to 2.26 in 2019. The company's total asset turnover decreased to 2.14 in 2023 from 2.17 in 2022 and 2.11 in 2021, suggesting that the company may be slightly less efficient in generating revenue from its total assets in the most recent year.
In conclusion, ManpowerGroup's long-term activity ratios indicate a mixed performance in terms of asset turnover efficiency over the past five years, with both fixed asset turnover and total asset turnover showing fluctuations. Further analysis and comparison with industry benchmarks may be required to fully assess the company's asset management efficiency.