Insperity Inc (NSP)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 353,000 | 304,543 | 279,969 | 226,979 | 198,747 |
| Payables | US$ in thousands | 10,000 | 11,000 | 7,732 | 6,412 | 6,203 |
| Payables turnover | 35.30 | 27.69 | 36.21 | 35.40 | 32.04 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $353,000K ÷ $10,000K
= 35.30
Insperity Inc's payables turnover has shown a generally increasing trend over the past five years. In December 2020, the payables turnover ratio stood at 32.04, indicating that the company's payables were being converted into cash approximately 32 times during that year. Over the following years, the ratio increased consistently, reaching 35.40 in December 2021, 36.21 in December 2022, and peaking at 35.30 in December 2024.
However, there was a slight decline in the payables turnover ratio in December 2023, dropping to 27.69. This decrease may suggest that the company took longer to pay its suppliers or that there was a change in its payment practices during that period.
Overall, the increasing trend in the payables turnover ratio for most of the years indicates that Insperity Inc is managing its accounts payable effectively by efficiently paying off its obligations to suppliers. This trend may reflect strong liquidity management and favorable relationships with suppliers, contributing to the company's overall financial health and stability.
Peer comparison
Dec 31, 2024