Insperity Inc (NSP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 4.55 | 3.90 | 3.57 | 3.44 |
| Receivables turnover | 9.31 | 9.51 | 9.67 | 10.90 | 9.25 |
| Payables turnover | 28.48 | 36.21 | 35.40 | 32.04 | 44.95 |
| Working capital turnover | 40.62 | 37.38 | 42.70 | 24.83 | 40.75 |
Inventory turnover is not available in the data provided.
Receivables turnover for Insperity Inc has shown relatively stable performance over the past five years, ranging from 9.19 to 10.92 times. This ratio indicates that the company is able to collect its accounts receivable efficiently, with a higher turnover implying quicker collection of funds.
Payables turnover is consistently reported as 0.00 for all years, suggesting that the company either does not have accounts payable or they are not actively managing their payable turnover.
Working capital turnover has varied over the years, reaching a peak of 42.77 in 2021 and lowest at 24.87 in 2020. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales, which reflects positively on operational efficiency.
Overall, the receivables turnover and working capital turnover ratios suggest that Insperity Inc has been efficient in managing its assets and working capital to drive sales and maintain liquidity. However, the lack of data for inventory and payables turnover limits a comprehensive analysis of the company's complete activity ratios.
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 | — | 80.16 | 93.61 | 102.27 | 106.22 |
| Days of sales outstanding (DSO) | days | 39.21 | 38.37 | 37.73 | 33.50 | 39.47 |
| Number of days of payables | days | 12.82 | 10.08 | 10.31 | 11.39 | 8.12 |
The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect revenue after a sale is made. Insperity Inc's DSO has been relatively stable over the past five years, fluctuating between 33.44 days in 2020 to 39.71 days in 2019. A decreasing trend in DSO would indicate improved efficiency in collecting receivables.
The Days of Inventory on Hand (DOH) ratio, currently not available in the data provided, typically measures how many days it takes for a company to turn its inventory into sales. A lower DOH ratio would suggest that the company is efficiently managing its inventory levels.
Lastly, the Number of Days of Payables ratio, not included in the data, is used to measure how long a company takes to pay its suppliers. A longer time to pay could indicate good cash flow management, but also potential strained supplier relations.
Overall, based on the information provided, Insperity Inc appears to have a relatively stable performance in managing its accounts receivable turnover, but without data on inventory and payables, a complete analysis of its working capital management is limited.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 32.72 | 29.62 | 23.56 | 19.79 | 29.16 |
| Total asset turnover | 3.05 | 2.91 | 2.83 | 2.70 | 3.09 |
Fixed asset turnover and total asset turnover are key long-term activity ratios that provide insights into how efficiently Insperity Inc is utilizing its assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate sales. A higher ratio indicates better efficiency in generating revenue from its fixed assets.
- Insperity Inc's fixed asset turnover has shown a fluctuating trend over the past five years, with a significant increase in 2023 compared to 2022. This suggests that the company has improved its utilization of fixed assets to generate sales revenue in the most recent year.
- The substantial increase in the fixed asset turnover from 2020 to 2023 indicates that the company has become more efficient in utilizing its fixed assets over time, potentially through better asset management or increased productivity.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company is using all its assets (both fixed and current) to generate sales. A higher ratio signifies better asset utilization in generating revenue.
- Insperity Inc's total asset turnover has generally shown an increasing trend over the past five years, indicating improvement in overall asset utilization efficiency.
- The ratio peaked in 2019 before declining slightly in the following years but remained relatively stable at above 2.7, which shows consistent efficiency in generating revenue relative to its total asset base.
- The upward trend in total asset turnover from 2020 to 2023 suggests that Insperity Inc has been effectively managing its total assets to enhance revenue generation and overall operational efficiency.
In conclusion, Insperity Inc has demonstrated efficiency in utilizing both its fixed assets and total assets to generate sales revenue, as indicated by the increasing trends in both fixed asset turnover and total asset turnover ratios over the past five years. The notable improvement in fixed asset turnover in 2023 reflects the company's enhanced utilization of fixed assets, contributing to its overall operational efficiency and profitability.