ManpowerGroup Inc (MAN)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 3.90 | 4.13 | 3.83 | 4.06 | 3.85 | 4.31 | 3.87 | 3.84 | 3.80 | 4.00 | 3.81 | 3.73 | 3.66 | 3.99 | 4.44 | 4.30 | 3.95 | 4.10 | 4.92 | 6.28 |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 24.36 | 20.90 | 19.64 | 17.96 | 19.32 | 20.94 | 20.67 | 31.08 | 32.20 | 13.49 | 10.54 | 9.75 | 9.07 | 8.74 | 9.60 | 10.28 | 10.19 | 10.71 | 13.20 | 17.91 |
The activity ratios of ManpowerGroup show the efficiency of the company in managing its resources and operations.
1. Receivables Turnover:
- The receivables turnover ratio indicates how many times during a period the company collects its accounts receivable.
- The ratio has been relatively stable, ranging from 3.85 to 4.32 over the past eight quarters.
2. Payables Turnover:
- The payables turnover ratio measures how many times a company pays its suppliers during a specific period.
- The ratio has shown consistency, fluctuating between 5.52 to 6.49 over the same period.
3. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate revenue.
- There is variation in this ratio, with values ranging from 18.03 to 31.15 over the past eight quarters.
Overall, the receivables turnover and payables turnover ratios suggest that ManpowerGroup efficiently manages its receivables and payables. However, the working capital turnover ratio fluctuates significantly, indicating varying levels of efficiency in utilizing working capital for revenue generation over time.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 93.71 | 88.39 | 95.28 | 89.96 | 94.89 | 84.67 | 94.27 | 95.03 | 96.16 | 91.26 | 95.89 | 97.74 | 99.81 | 91.43 | 82.17 | 84.97 | 92.43 | 88.94 | 74.26 | 58.13 |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Days of inventory on hand (DOH) data is missing, so we cannot analyze the efficiency of managing inventory turnover.
Days of sales outstanding (DSO) measures how quickly a company collects outstanding receivables. ManpowerGroup's DSO has been increasing over the past quarters, indicating that it is taking longer to collect payments from customers. The increase in DSO could suggest potential issues with billing and collection processes.
Number of days of payables indicates how long it takes for a company to pay its bills to suppliers. ManpowerGroup's days of payables have been fairly consistent, with some fluctuations, but generally, the company takes around 60-65 days to pay its bills. This shows a stable relationship with suppliers in terms of payment.
Overall, ManpowerGroup may need to focus on improving its accounts receivable collection processes to reduce the time taken to collect payments from customers and maintain healthy cash flow. However, the stability in the days of payables suggests a relatively good relationship with suppliers in terms of payment obligations.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 144.83 | 158.84 | 164.53 | 175.42 | 176.13 | 194.90 | 188.10 | 184.26 | 177.06 | 171.41 | 161.03 | 144.32 | 132.97 | 136.65 | 137.58 | 147.38 | 145.32 | 150.14 | 180.22 | 222.42 |
| Total asset turnover | 2.13 | 2.21 | 2.16 | 2.18 | 2.16 | 2.38 | 2.15 | 2.15 | 2.10 | 2.15 | 2.09 | 1.98 | 1.93 | 2.02 | 2.22 | 2.35 | 2.26 | 2.40 | 2.94 | 3.69 |
ManpowerGroup's long-term activity ratios indicate its efficiency in generating sales relative to its assets and fixed assets. The fixed asset turnover ratio has been consistently decreasing over the past eight quarters, from 176.72 in Q4 2022 to 145.61 in Q4 2023. This suggests a decline in the company's ability to generate sales from its fixed assets, which could be a cause for concern as it might indicate underutilization or inefficiency in managing fixed assets.
On the other hand, the total asset turnover ratio has also shown a slight decrease over the same period, from 2.38 in Q3 2022 to 2.14 in Q4 2023. This ratio measures the company's ability to generate sales from all its assets, including fixed and current assets. The decreasing trend in the total asset turnover ratio might indicate a decline in overall efficiency in utilizing assets to generate sales.
Overall, based on the long-term activity ratios, ManpowerGroup may need to reassess its asset utilization strategies to improve efficiency and productivity in generating sales from both fixed and total assets.