Insperity Inc (NSP)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 91,000 171,000 179,350 124,080 138,237
Total assets US$ in thousands 2,597,000 2,120,000 2,039,260 1,753,080 1,584,280
ROA 3.50% 8.07% 8.79% 7.08% 8.73%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $91,000K ÷ $2,597,000K
= 3.50%

Insperity Inc's Return on Assets (ROA) has fluctuated over the past five years. As of December 31, 2020, the ROA stood at 8.73%, indicating that the company generated 8.73 cents in profit for every dollar of assets held. Subsequently, the ROA declined to 7.08% by December 31, 2021, but rebounded to 8.79% by the end of 2022. However, there was a slight decrease in ROA to 8.07% by December 31, 2023, followed by a significant drop to 3.50% by December 31, 2024.

The trend in ROA suggests that Insperity Inc's efficiency in generating profits from its assets has been somewhat volatile in recent years. A declining ROA may indicate inefficiency in asset utilization or declining profitability relative to the size of its asset base. The sharp decrease in ROA in 2024 deserves attention and may require further investigation into the factors affecting profitability and asset efficiency within the company.