Insperity Inc (NSP)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		9.31	9.51	9.67	10.90	9.25
DSO	days	39.21	38.37	37.73	33.50	39.47

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.31
= 39.21

Insperity Inc's days of sales outstanding (DSO) has shown some variability over the past five years. The DSO for the most recent year, ending on December 31, 2023, was 39.05 days, which is slightly higher than the prior year's figure of 38.28 days. This increase suggests that the company took slightly longer to collect its accounts receivable in 2023 compared to 2022.

Looking back further, the DSO for 2021 was 38.59 days, slightly higher than 2022, but lower than 2020, which had a DSO of 33.44 days. The DSO for 2019 was 39.71 days, higher than both 2023 and 2020. Overall, the trend in DSO has been fluctuating, with some years showing improvements in collection efficiency (lower DSO) and others showing a slight deterioration.

In interpreting these figures, a higher DSO could indicate that the company is struggling to collect its accounts receivable promptly, which may impact its cash flow and liquidity. It is important for Insperity Inc to monitor and manage its DSO effectively to ensure timely collection of outstanding payments and maintain a healthy working capital position.