Insperity Inc (NSP)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	304,543	299,659	298,532	285,363	279,969	267,300	257,526	244,349	226,979	219,367	206,053	195,723	198,747	198,827	202,891	209,096	205,184	202,593	194,161	188,561
Payables	US$ in thousands	10,693	7,207	6,807	9,491	7,732	5,466	6,034	7,826	6,412	4,250	4,063	5,841	6,203	6,016	2,885	6,240	4,565	5,373	6,548	7,854
Payables turnover		28.48	41.58	43.86	30.07	36.21	48.90	42.68	31.22	35.40	51.62	50.71	33.51	32.04	33.05	70.33	33.51	44.95	37.71	29.65	24.01

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $304,543K ÷ $10,693K
= 28.48

The payables turnover ratio for Insperity Inc has fluctuated significantly over the past 8 quarters. In the most recent quarter, Q4 2023, the company reported a payables turnover ratio of 0.00, indicating that the company did not effectively utilize its accounts payables to finance its operations during this period. This is a notable contrast to the significant payables turnover ratios reported in Q2 2022 and Q1 2022, which were 167.58 and 255.17, respectively.

A payables turnover ratio of 0.00 suggests that the company is taking an extended period to pay its suppliers, perhaps signaling potential liquidity or operational issues. It may also indicate that the company is not effectively managing its payables or is paying its suppliers early. The variability in the payables turnover ratio over the periods examined indicates some inconsistency in the company's payables management practices. Further analysis and comparison with industry peers may provide additional insights into the company's financial performance and efficiency in managing its payables.