Insperity Inc (NSP)

Working capital 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
Revenue (ttm)	US$ in thousands	6,458,730	6,369,930	6,261,170	6,112,150	5,924,610	5,729,730	5,502,310	5,256,290	4,965,620	4,730,930	4,529,360	4,337,107	4,278,987	4,299,447	4,334,627	4,385,160	4,309,370	4,201,036	4,083,718	3,963,225
Total current assets	US$ in thousands	1,595,290	1,477,680	1,363,640	1,518,070	1,511,870	1,289,010	1,410,640	1,431,910	1,244,850	1,206,470	1,201,290	1,251,500	1,077,270	1,048,860	1,068,650	1,079,280	974,746	893,743	919,177	980,081
Total current liabilities	US$ in thousands	1,436,290	1,321,360	1,135,680	1,302,960	1,353,370	1,121,250	1,246,600	1,286,600	1,128,570	1,004,180	1,002,690	1,044,350	904,924	841,070	840,563	888,458	869,045	761,212	769,848	850,389
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

December 31, 2023 calculation

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

The working capital turnover ratio for Insperity Inc has shown some fluctuations over the past eight quarters. It indicates how effectively the company is utilizing its working capital to generate revenue.

In Q4 2023, the working capital turnover ratio was 40.79, slightly lower compared to Q3 2023 at 40.91. This indicates that the company was able to convert its working capital into revenue at a slightly slower pace in Q4.

Looking further back, Q2 2023 had a significant decrease in working capital turnover to 27.56, possibly indicating inefficiencies in managing working capital during that period. However, Q1 2023 showed an improvement with a ratio of 28.50.

Comparing the recent quarters to the same period in the previous year, Q4 2023's ratio of 40.79 is higher than Q4 2022's ratio of 37.47, showing a positive trend in utilizing working capital more effectively to generate revenue.

Overall, Insperity Inc's working capital turnover ratio has shown variability in recent quarters, but it appears to have improved compared to the same period last year. The company should continue to monitor and fine-tune its working capital management to ensure efficient use of resources in revenue generation.