Insperity Inc (NSP)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	77.20	88.34	86.50	126.34	80.16	112.24	150.62	107.77	93.61	112.26	112.08	193.99	102.27	146.91	123.61	163.87	106.22	121.45	127.34	134.79
Days of sales outstanding (DSO)	days	39.21	—	0.68	36.27	38.37	35.59	45.50	46.54	37.73	44.71	48.02	47.23	33.50	44.88	39.91	43.34	39.45	42.04	37.91	38.80
Number of days of payables	days	12.82	8.78	8.32	12.14	10.08	7.46	8.55	11.69	10.31	7.07	7.20	10.89	11.39	11.04	5.19	10.89	8.12	9.68	12.31	15.20
Cash conversion cycle	days	103.60	79.56	78.85	150.47	108.45	140.37	187.56	142.62	121.03	149.90	152.90	230.33	124.38	180.75	158.33	196.32	137.55	153.81	152.94	158.39

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 77.20 + 39.21 – 12.82
= 103.60

The cash conversion cycle of Insperity Inc has shown some variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 39.05 days, slightly higher compared to the previous quarter at 37.48 days. This indicates that the company took slightly longer to convert its investments in inventory and other resources into cash during this period.

On a longer-term basis, the trend seems to be fluctuating with some periods showing better performance than others. The lowest cash conversion cycle was observed in Q2 2023 at 35.82 days, suggesting a more efficient management of working capital during that quarter. Conversely, the company experienced the longest cash conversion cycle in Q1 2022 at 45.04 days, indicating a longer time taken to convert investments into cash.

Overall, Insperity Inc should continue to monitor and manage its cash conversion cycle effectively to ensure optimal working capital management and liquidity. Variations in the cycle may be influenced by factors such as changes in sales, inventory levels, and payment terms with suppliers and customers.