ManpowerGroup Inc (MAN)

Liquidity 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
Current ratio 1.16 1.21 1.21 1.24 1.21 1.22 1.19 1.12 1.11 1.28 1.38 1.39 1.42 1.48 1.50 1.49 1.46 1.48 1.46 1.43
Quick ratio 1.13 1.17 1.17 1.20 1.18 1.18 1.15 1.09 1.09 1.25 1.35 1.35 1.38 1.43 1.44 1.43 1.42 1.44 1.42 1.36
Cash ratio 0.12 0.13 0.09 0.15 0.13 0.12 0.16 0.14 0.15 0.30 0.30 0.32 0.33 0.37 0.37 0.27 0.23 0.20 0.18 0.13

ManpowerGroup's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations with its current assets.

The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been relatively stable over the past eight quarters, ranging from 1.12 to 1.24. This suggests that ManpowerGroup generally has sufficient current assets to cover its short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown consistency over the quarters, ranging from 1.12 to 1.24. This indicates that the company has a solid ability to meet its immediate financial commitments without relying on selling inventory.

Lastly, the cash ratio, which is the most conservative liquidity ratio as it measures the company's ability to cover its current liabilities with its cash and cash equivalents, has fluctuated between 0.13 and 0.20. A higher cash ratio indicates a stronger ability to cover short-term obligations with cash on hand, which may be preferred during uncertain economic conditions.

Overall, ManpowerGroup's liquidity ratios demonstrate a stable and satisfactory liquidity position, with the company having a reasonable ability to meet its short-term financial obligations using its current assets and cash reserves.

Additional liquidity measure

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
Cash conversion cycle 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

The cash conversion cycle for ManpowerGroup has varied over the past eight quarters, ranging from a low of 27.89 days in Q3 2023 to a high of 31.61 days in Q2 2023. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash from sales.

A lower cash conversion cycle indicates that the company is able to generate cash more quickly, potentially leading to better liquidity and working capital management. In contrast, a higher cash conversion cycle suggests that the company's cash is tied up in operations for a longer period, which could put strain on liquidity and working capital.

ManpowerGroup's cash conversion cycle trended downwards in the last few quarters, indicating that the company has been improving its efficiency in managing its working capital and turning its investments into cash more rapidly. However, the fluctuation in the cash conversion cycle figures from quarter to quarter also suggests some volatility in the company's cash management practices. It would be essential for ManpowerGroup to continue monitoring and optimizing its cash conversion cycle to sustain healthy liquidity levels and operational efficiency.