Insperity Inc (NSP)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.11 | 1.12 | 1.20 | 1.17 | 1.12 | 1.15 | 1.13 | 1.11 | 1.10 | 1.20 | 1.20 | 1.20 | 1.19 | 1.25 | 1.27 | 1.21 | 1.12 | 1.17 | 1.19 | 1.15 |
| Quick ratio | 1.06 | 0.60 | 0.64 | 1.07 | 1.07 | 1.07 | 1.02 | 1.00 | 1.07 | 1.13 | 1.13 | 1.09 | 1.14 | 1.16 | 1.20 | 1.09 | 1.01 | 1.06 | 1.07 | 1.06 |
| Cash ratio | 0.58 | 0.60 | 0.63 | 0.60 | 0.61 | 0.57 | 0.47 | 0.48 | 0.62 | 0.55 | 0.54 | 0.55 | 0.70 | 0.53 | 0.64 | 0.50 | 0.48 | 0.42 | 0.52 | 0.56 |
Insperity Inc's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with current assets, has fluctuated between 1.11 and 1.20. A current ratio above 1 indicates that the company has more current assets than current liabilities, providing a good margin of safety.
The quick ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. Insperity Inc's quick ratio has ranged from 1.07 to 1.16, indicating that the company has a solid ability to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents, has fluctuated between 0.53 and 0.66. The decreasing trend in the cash ratio may indicate that the company is using more of its cash resources to meet short-term obligations.
Overall, the liquidity ratios of Insperity Inc suggest that the company has maintained a relatively stable liquidity position over the past eight quarters, with a comfortable ability to meet its short-term obligations. However, investors and stakeholders should continue to monitor these ratios to ensure ongoing financial health and liquidity management.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Insperity Inc has shown some fluctuations over the past eight quarters. The company's cash conversion cycle ranged from a low of 35.52 days in Q3 2022 to a high of 45.04 days in Q1 2022.
Overall, it appears that the company has been able to effectively manage its cash conversion cycle, with the cycle typically falling within the 35-45 days range. A lower cash conversion cycle indicates that the company is able to convert its resources into cash more efficiently, which is generally a positive sign.
In the recent quarters, there has been a slight increase in the cash conversion cycle, with Q4 2023 showing a cycle of 39.05 days. This could potentially signal that the company is taking longer to convert its investments in inventory and accounts receivable into cash.
It would be important for stakeholders to monitor this trend and assess the underlying reasons for the fluctuations in the cash conversion cycle to ensure that the company's working capital management remains effective and sustainable in the long term.