Insperity Inc (NSP)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	6,581,000	6,520,000	6,509,840	6,490,280	6,458,730	6,369,930	6,261,170	6,112,150	5,924,610	5,729,730	5,502,310	5,256,290	4,965,620	4,730,930	4,529,360	4,337,107	4,278,987	4,299,447	4,334,627	4,385,160
Property, plant and equipment	US$ in thousands	192,000	190,000	186,000	191,000	197,000	190,672	192,829	196,382	199,992	196,601	199,322	205,064	210,723	212,322	219,611	220,262	216,256	196,210	177,762	160,297
Fixed asset turnover		34.28	34.32	35.00	33.98	32.79	33.41	32.47	31.12	29.62	29.14	27.61	25.63	23.56	22.28	20.62	19.69	19.79	21.91	24.38	27.36

December 31, 2024 calculation

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

Insperity Inc's fixed asset turnover ratio has exhibited a declining trend from March 2020 to December 2024. The ratio decreased from 27.36 in March 2020 to 34.28 in December 2024. This indicates that the company generated $27.36 in revenue for every dollar invested in fixed assets in March 2020, with this value declining to $34.28 by December 2024.

The decreasing trend in the fixed asset turnover ratio suggests that the efficiency of utilizing fixed assets to generate sales has been deteriorating over the observation period. A lower ratio could indicate inefficiencies in asset utilization or a decrease in sales relative to the value of fixed assets.

It is important for the management of Insperity Inc to closely monitor this ratio and identify the reasons behind the declining trend in fixed asset turnover. This analysis can help the company make informed decisions to improve asset utilization and operational efficiency, ultimately leading to enhanced profitability and sustainable growth.