Insperity Inc (NSP)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	6,581,000	6,458,730	5,924,610	4,965,610	4,278,990
Property, plant and equipment	US$ in thousands	192,000	197,000	199,992	210,723	216,256
Fixed asset turnover		34.28	32.79	29.62	23.56	19.79

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,581,000K ÷ $192,000K
= 34.28

Insperity Inc's fixed asset turnover has shown a consistent upward trend over the past five years, increasing from 19.79 in December 2020 to 34.28 in December 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets.

A higher fixed asset turnover ratio suggests that the company is utilizing its fixed assets more efficiently to generate sales. Insperity Inc's ability to generate more sales per dollar invested in fixed assets signifies operational efficiency and effective asset management.

The significant improvement in the fixed asset turnover ratio over the years reflects positively on Insperity Inc's operational performance and could indicate improvements in production processes, cost management, or asset utilization. This trend may be appealing to investors as it demonstrates the company's ability to maximize the utilization of its fixed assets to drive revenue growth.