Insperity Inc (NSP)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 4.73 4.13 4.22 2.89 4.55 3.25 2.42 3.39 3.90 3.25 3.26 1.88 3.57 2.48 2.95 2.23 3.44 3.01 2.87 2.71
Receivables turnover 9.31 — 540.31 10.06 9.51 10.26 8.02 7.84 9.67 8.16 7.60 7.73 10.90 8.13 9.15 8.42 9.25 8.68 9.63 9.41
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
Working capital turnover 40.62 40.75 27.47 28.41 37.38 34.15 33.54 36.17 42.70 23.39 22.81 20.94 24.83 20.69 19.00 22.98 40.77 31.70 27.35 30.56

The activity ratios of Insperity Inc provide insights into how effectively the company manages its assets and liabilities in generating revenue.

1. Receivables Turnover: The receivables turnover ratio measures how efficiently the company collects payments from its customers. Insperity's receivables turnover has been within a relatively stable range in the most recent quarters, indicating that the company's credit and collection policies are effective.

2. Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Insperity's payables turnover was extremely low in the past quarters, indicating that the company may be taking longer to pay its suppliers compared to earlier periods. This could suggest potential cash flow management or liquidity issues.

3. Working Capital Turnover: The working capital turnover ratio measures how well the company utilizes its working capital to generate sales. Insperity has shown fluctuating working capital turnover figures, with a notable increase in Q4 2023 compared to earlier quarters. This increase indicates that the company is using its working capital more efficiently to generate revenue.

In summary, Insperity's activity ratios suggest that the company is efficiently managing its receivables and working capital, but may need to address its payables turnover to optimize its cash flow management.

Average number of days

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
Days of inventory on hand (DOH) days 77.20 88.34 86.50 126.34 80.16 112.24 150.62 107.77 93.61 112.26 112.08 193.99 102.27 146.91 123.61 163.87 106.22 121.45 127.34 134.79
Days of sales outstanding (DSO) days 39.21 — 0.68 36.27 38.37 35.59 45.50 46.54 37.73 44.71 48.02 47.23 33.50 44.88 39.91 43.34 39.45 42.04 37.91 38.80
Number of days of payables days 12.82 8.78 8.32 12.14 10.08 7.46 8.55 11.69 10.31 7.07 7.20 10.89 11.39 11.04 5.19 10.89 8.12 9.68 12.31 15.20

Insperity Inc's activity ratios indicate efficient management of its inventory, receivables, and payables.

1. Days of sales outstanding (DSO) have been consistently decreasing over the quarters, indicating that the company is collecting its accounts receivable more quickly. This trend suggests effective credit management and timely collection of cash from customers.

2. Furthermore, the increasing trend in Days of inventory on hand (DOH) suggests that the company is managing its inventory efficiently by reducing the number of days it takes to sell its inventory. This could help in controlling carrying costs and minimizing obsolete inventory.

3. The fluctuation in the Number of days of payables may indicate changes in the company's payment terms with suppliers. However, a longer payable period can benefit the company by improving cash flow management and liquidity.

Overall, the company's activity ratios reflect effective working capital management, which is crucial for optimizing operational efficiency and maintaining healthy cash flows.

Long-term

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
Fixed asset turnover 32.72 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 29.18 31.13 33.80 34.13
Total asset turnover 3.05 3.19 3.36 3.00 2.91 3.22 2.91 2.71 2.83 2.73 2.62 2.45 2.70 2.82 2.86 2.88 3.09 3.25 3.10 2.93

The long-term activity ratios for Insperity Inc indicate the efficiency with which the company is utilizing its assets to generate revenues.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio has been consistently high, showing an increasing trend over the quarters. This suggests that Insperity Inc is generating significant revenue relative to its investment in fixed assets such as property, plant, and equipment. A high fixed asset turnover ratio indicates efficient utilization of these assets to generate sales.

2. Total Asset Turnover:
- The total asset turnover ratio shows a fluctuating pattern over the quarters, but generally remains at a healthy level. This ratio indicates the company's ability to generate sales in relation to its total assets, including both fixed and current assets. Insperity Inc's total asset turnover ratio suggests that the company is effectively using its total assets to generate revenue, although there appears to be some variability in efficiency from quarter to quarter.

In conclusion, the high and increasing trend in the fixed asset turnover ratio, combined with a satisfactory level of the total asset turnover ratio, indicates that Insperity Inc is efficiently utilizing its assets to generate revenues over the long term.