Insperity Inc (NSP)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	6,581,000	6,458,730	5,924,610	4,965,610	4,278,990
Total current assets	US$ in thousands	2,085,000	1,595,000	1,511,870	1,244,850	1,077,270
Total current liabilities	US$ in thousands	1,930,000	1,436,000	1,353,370	1,128,570	904,924
Working capital turnover		42.46	40.62	37.38	42.70	24.83

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,581,000K ÷ ($2,085,000K – $1,930,000K)
= 42.46

Insperity Inc's working capital turnover has shown a positive trend over the past five years, increasing from 24.83 in December 31, 2020, to 42.46 in December 31, 2024. This indicates that the company has been able to efficiently utilize its working capital to generate revenue. The peak turnover of 42.70 was achieved in December 31, 2021, suggesting an optimal management of working capital during that period. Despite a slight decline in turnover in 2022, the company managed to maintain a relatively high efficiency in subsequent years.

A higher working capital turnover ratio generally signifies that the company is effectively managing its working capital and turning it into sales. This indicates a strong ability to meet short-term obligations and fund operations through current assets. Insperity Inc's consistent upward trend in working capital turnover reflects positively on its operational efficiency and financial management capabilities, showcasing a healthy balance between current assets and liabilities.