ManpowerGroup Inc (MAN)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 1.12 | 1.16 | 1.21 | 1.11 | 1.42 |
| Quick ratio | 1.08 | 1.13 | 1.18 | 1.09 | 1.38 |
| Cash ratio | 0.11 | 0.12 | 0.13 | 0.15 | 0.33 |
ManpowerGroup Inc's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio, which measures current assets against current liabilities, has shown a slight decrease from 1.42 in 2020 to 1.12 in 2024. This suggests a slight weakening in the company's short-term liquidity position.
Similarly, the quick ratio, which excludes inventory from current assets, has also seen a decline from 1.38 in 2020 to 1.08 in 2024. This indicates that the company may have more difficulty meeting its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has decreased significantly from 0.33 in 2020 to 0.11 in 2024. This indicates that ManpowerGroup Inc has a decreasing ability to cover its short-term liabilities with its cash reserves alone.
Overall, the declining trend in these liquidity ratios suggests a potential liquidity challenge for ManpowerGroup Inc over the years, highlighting the importance of closely monitoring the company's cash and liquid assets to ensure it can meet its short-term financial obligations.
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 87.81 | 93.72 | 94.87 | 96.16 | 99.87 |
The cash conversion cycle of ManpowerGroup Inc has shown a consistent improvement over the years, indicating more efficient management of working capital.
Starting at 99.87 days on December 31, 2020, the company's cash conversion cycle decreased to 96.16 days by the end of 2021, reflecting a quicker conversion of inventory and receivables into cash.
The trend continued in the subsequent years, with further reductions to 94.87 days, 93.72 days, and reaching 87.81 days by December 31, 2024. This indicates that ManpowerGroup has been successful in managing its cash flow and operating cycle more effectively.
A declining cash conversion cycle suggests that the company is collecting payments from customers more quickly, managing inventory efficiently, and negotiating favorable payment terms with suppliers. Overall, the decreasing trend in the cash conversion cycle is a positive sign of improved liquidity and operational efficiency for ManpowerGroup Inc.