Insperity Inc (NSP)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Operating income (ttm) US$ in thousands 117,000 154,271 212,271 205,271 218,271 246,863 240,494 272,844 250,239 214,055 201,027 187,900 173,329 166,359 155,528 193,292 194,689 214,699 220,660 186,393
Total assets US$ in thousands 2,597,000 1,933,000 2,095,000 2,126,000 2,120,000 1,996,470 1,865,270 2,039,970 2,039,260 1,781,510 1,892,910 1,940,080 1,753,080 1,734,050 1,728,080 1,769,080 1,584,280 1,523,280 1,517,730 1,522,410
Operating ROA 4.51% 7.98% 10.13% 9.66% 10.30% 12.36% 12.89% 13.37% 12.27% 12.02% 10.62% 9.69% 9.89% 9.59% 9.00% 10.93% 12.29% 14.09% 14.54% 12.24%

December 31, 2024 calculation

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

The operating return on assets (operating ROA) measures a company's ability to generate profit from its assets used in operations.

Insperity Inc's operating ROA has shown fluctuation over the past few years:

- The operating ROA increased from 12.24% in March 2020 to a peak of 14.54% in June 2020, indicating efficient asset utilization and profitability during that period.

- However, the operating ROA declined to 9.00% in June 2021 and further to 7.98% in September 2024, suggesting a decrease in profitability relative to assets employed in operations.

- There were some periods of recovery, such as the increase from 9.59% in September 2021 to 12.27% in December 2022, showcasing a rebound in operational efficiency.

- The operating ROA decreased significantly to 4.51% in December 2024, indicating a potential decline in profitability and asset efficiency at the end of the period.

Overall, Insperity Inc's operating ROA experienced fluctuations, reflecting changes in operational performance and asset utilization efficiency over the analyzed period. Further analysis and monitoring are recommended to assess the company's ability to generate profit from its operational assets effectively.