Insperity Inc (NSP)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	692,873	732,828	575,812	554,846	367,342
Short-term investments	US$ in thousands	135,313	90,031	120,742	82,521	47,946
Receivables	US$ in thousands	693,878	622,764	513,306	392,746	465,779
Total current liabilities	US$ in thousands	1,436,290	1,353,370	1,128,570	904,924	869,045
Quick ratio		1.06	1.07	1.07	1.14	1.01

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($692,873K + $135,313K + $693,878K) ÷ $1,436,290K
= 1.06

The quick ratio of Insperity Inc has shown a slight fluctuation over the past five years, ranging from 1.06 to 1.14. This ratio measures the company's ability to cover its short-term obligations with its most liquid assets, excluding inventory.

A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities, which is a positive sign for creditors and investors. Insperity Inc maintained a quick ratio above 1 in each of the past five years, suggesting its ability to meet its short-term financial obligations without relying heavily on inventory liquidation.

The slight variations in the quick ratio over the years may be influenced by changes in the company's cash, marketable securities, and accounts receivable levels. Overall, the consistent quick ratio above 1 reflects Insperity Inc's strong liquidity position and its ability to manage short-term financial obligations effectively.