Insperity Inc (NSP)

Working capital 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
Total current assets	US$ in thousands	1,595,290	1,511,870	1,244,850	1,077,270	974,746
Total current liabilities	US$ in thousands	1,436,290	1,353,370	1,128,570	904,924	869,045
Working capital turnover		40.62	37.38	42.70	24.83	40.75

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,458,730K ÷ ($1,595,290K – $1,436,290K)
= 40.62

The working capital turnover for Insperity Inc has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

From 2019 to 2020, there was a significant decrease in the working capital turnover, indicating a potential inefficiency in utilizing working capital to generate revenue. However, from 2020 to 2021, there was a notable improvement in the ratio, suggesting a better utilization of working capital during that period.

In 2021, Insperity Inc achieved its highest working capital turnover in the past five years, indicating a strong ability to generate revenue relative to its working capital. Subsequently, in 2022, there was a slight decrease in the ratio, although it remained relatively high compared to previous years.

Overall, the working capital turnover for Insperity Inc has demonstrated variability but generally reflects a pattern of efficiently utilizing working capital to generate revenue, with some fluctuations in performance over the years.