ManpowerGroup Inc (MAN)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.12 | 1.15 | 1.14 | 1.17 | 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 |
| Quick ratio | 1.08 | 1.11 | 1.11 | 1.12 | 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 |
| Cash ratio | 0.11 | 0.09 | 0.10 | 0.13 | 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 |
ManpowerGroup Inc's liquidity ratios show fluctuating trends over the reporting periods.
1. Current Ratio: ManpowerGroup's current ratio declined from 1.49 in March 2020 to 1.12 in March 2024. Although it experienced some fluctuations, it stayed above 1.0 throughout the periods, indicating that the company can cover its short-term obligations with its current assets.
2. Quick Ratio: The quick ratio followed a similar trend as the current ratio, dropping from 1.43 in March 2020 to 1.11 in December 2024. This ratio considers only the most liquid assets in covering short-term liabilities, revealing a slightly more conservative view of ManpowerGroup's ability to meet its immediate payment obligations.
3. Cash Ratio: The cash ratio also displayed a downward trend, falling from 0.37 in June 2020 to 0.11 in December 2024. This ratio focuses purely on cash and cash equivalents in relation to current liabilities, reflecting a diminishing liquidity cushion in terms of the most liquid assets available to meet short-term obligations.
Overall, while the current, quick, and cash ratios indicate that ManpowerGroup generally maintained sufficient liquidity to meet its short-term liabilities throughout the periods, the declining trend suggests a potential tightening liquidity position towards the end of the analyzed period, highlighting the importance of monitoring liquidity management strategies.
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 87.89 | 92.94 | 92.39 | 88.12 | 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 |
The cash conversion cycle of ManpowerGroup Inc has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we observe that the cash conversion cycle ranged from a low of 82.17 days on June 30, 2020, to a high of 99.81 days on December 31, 2020. The company's cash conversion cycle decreased to 84.67 days on September 30, 2022, before increasing again to a higher level.
Overall, there seems to be some variability in the cash conversion cycle of ManpowerGroup Inc, which may indicate fluctuations in the efficiency of managing its working capital. It is crucial for the company to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain healthy cash flow levels.