Insperity Inc (NSP)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 117,000 219,000 250,239 173,329 194,689
Total assets US$ in thousands 2,597,000 2,120,000 2,039,260 1,753,080 1,584,280
Operating ROA 4.51% 10.33% 12.27% 9.89% 12.29%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $117,000K ÷ $2,597,000K
= 4.51%

Based on the provided data, Insperity Inc's operating return on assets (operating ROA) has shown some fluctuations over the years.

In December 31, 2020, the operating ROA stood at 12.29%, demonstrating the company's ability to generate operating income relative to its total assets.

Over the following years, there was a decrease in the operating ROA to 9.89% by December 31, 2021. This could indicate a potential decline in the company's operating efficiency or profitability during that period.

However, there was a recovery in the operating ROA to 12.27% by December 31, 2022, suggesting an improvement in the company's operational performance.

Subsequently, by December 31, 2023, the operating ROA decreased slightly to 10.33%, indicating a moderate decline in the company's operating profitability.

Finally, as of December 31, 2024, the operating ROA dropped significantly to 4.51%, signaling a notable decrease in the company's ability to generate operating income relative to its total assets.

In conclusion, while Insperity Inc's operating ROA has shown some variability over the years, it is essential for the company to closely monitor and manage its operating efficiency and profitability to ensure sustainable financial performance.