Insperity Inc (NSP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,458,730 | 5,924,610 | 4,965,610 | 4,278,990 | 4,307,160 |
| Receivables | US$ in thousands | 693,878 | 622,764 | 513,306 | 392,746 | 465,779 |
| Receivables turnover | 9.31 | 9.51 | 9.67 | 10.90 | 9.25 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,458,730K ÷ $693,878K
= 9.31
The receivables turnover ratio of Insperity Inc has been relatively stable over the past five years, ranging from 9.19 to 10.92. This ratio indicates how efficiently the company is able to collect outstanding receivables from its customers during a specified period. A higher turnover ratio generally indicates a more efficient collection process.
In 2020, the receivables turnover ratio was at its highest point of 10.92, suggesting that the company was able to collect receivables more quickly that year. However, in 2019 and 2021, the turnover ratios were relatively lower at 9.19 and 9.46, respectively. This could be indicative of slower collection of receivables during those years.
Overall, the consistency of the receivables turnover ratio around the 9 to 10 range indicates that Insperity Inc has been fairly effective in managing its accounts receivable and converting them into cash over the past five years.
Peer comparison
Dec 31, 2023