Insperity Inc (NSP)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	80.16	93.61	102.27	106.22
Days of sales outstanding (DSO)	days	39.21	38.37	37.73	33.50	39.47
Number of days of payables	days	12.82	10.08	10.31	11.39	8.12
Cash conversion cycle	days	26.40	108.45	121.03	124.38	137.57

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 39.21 – 12.82
= 26.40

The cash conversion cycle of Insperity Inc has shown some fluctuation over the past five years. In 2023, the company's cash conversion cycle increased to 39.05 days from 38.28 days in 2022. This indicates that it took slightly longer for the company to convert its resources into cash during 2023.

Comparing to the prior years, the cash conversion cycle had decreased in 2020 to 33.44 days, indicating a more efficient management of cash flow during that period. However, it increased again in 2021 and 2019 to 38.59 days and 39.71 days respectively.

Overall, although there have been fluctuations, it is important for Insperity Inc to monitor and manage its cash conversion cycle effectively to ensure optimal cash flow efficiency and liquidity management.