Insperity Inc (NSP)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,458,730	5,924,610	4,965,610	4,278,990	4,307,160
Property, plant and equipment	US$ in thousands	197,424	199,992	210,723	216,256	147,706
Fixed asset turnover		32.72	29.62	23.56	19.79	29.16

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,458,730K ÷ $197,424K
= 32.72

The fixed asset turnover ratio for Insperity Inc has shown a fluctuating trend over the past five years. The ratio increased from 19.82 in 2020 to 32.85 in 2023, indicating that the company generated $32.85 in sales for every dollar invested in fixed assets in 2023. This significant improvement suggests an efficient utilization of fixed assets to generate revenue. However, it is essential to note that in 2021, the ratio dropped to 23.60, showing a temporary decrease in efficiency in asset utilization. Overall, the increasing trend in fixed asset turnover ratio reflects positively on Insperity Inc's ability to generate sales from its investment in fixed assets, albeit with some fluctuations in the recent years.