Insperity Inc (NSP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.99% | 16.06% | 17.07% | 16.52% | 18.86% |
| Operating profit margin | 1.78% | 3.39% | 4.22% | 3.49% | 4.55% |
| Pretax margin | 1.91% | 3.48% | 4.14% | 3.39% | 4.42% |
| Net profit margin | 1.38% | 2.65% | 3.03% | 2.50% | 3.23% |
Insperity Inc's profitability ratios show a downward trend over the years. The gross profit margin decreased from 18.86% in December 31, 2020, to 15.99% in December 31, 2024, indicating a decline in the percentage of revenue retained after deducting the cost of goods sold.
Similarly, the operating profit margin fell from 4.55% in December 31, 2020, to 1.78% in December 31, 2024, demonstrating a decrease in the efficiency of the company's core operations in generating profits.
The pretax margin, reflecting the company's profitability before taxes, also saw a decline from 4.42% in December 31, 2020, to 1.91% in December 31, 2024, showing a reduction in the earnings retained by the company before tax obligations.
Furthermore, the net profit margin, which represents the company's bottom line profitability after all expenses have been deducted, decreased from 3.23% in December 31, 2020, to 1.38% in December 31, 2024, indicating diminishing profitability for shareholders.
Overall, the declining trend in Insperity Inc's profitability ratios suggests challenges in maintaining and improving profitability levels over the years, which may require strategic adjustments to enhance operational efficiency and cost management.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.51% | 10.33% | 12.27% | 9.89% | 12.29% |
| Return on assets (ROA) | 3.50% | 8.07% | 8.79% | 7.08% | 8.73% |
| Return on total capital | 33.05% | 54.47% | 57.64% | 47.81% | 47.71% |
| Return on equity (ROE) | 93.81% | 181.91% | 221.42% | — | 313.24% |
Insperity Inc's profitability ratios show fluctuations over the years ending December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA) ranged from 9.89% to 12.29% during this period. It measures how efficiently the company is generating operating profits from its assets.
2. Return on assets (ROA) varied between 3.50% and 8.73% over the same period. ROA indicates overall profitability by measuring how well the company is utilizing its assets to generate returns.
3. Return on total capital ranged from 33.05% to 57.64%. This ratio assesses the company's ability to generate profits from all sources of capital, including debt and equity.
4. Return on equity (ROE) exhibited significant fluctuations, with values ranging from 93.81% to 313.24%. ROE is a key metric indicating how efficiently the company is generating profits from shareholders' equity.
Overall, while Insperity Inc's profitability ratios demonstrate some variability, it is essential to analyze the company's performance in conjunction with other financial metrics and factors to gain a comprehensive understanding of its profitability and financial health.