Insperity Inc (NSP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 154,000 | 252,215 | 259,632 | 175,776 | 197,286 |
| Long-term debt | US$ in thousands | 369,000 | 369,000 | 369,400 | 369,400 | 369,400 |
| Total stockholders’ equity | US$ in thousands | 97,000 | 94,000 | 81,000 | -1,774 | 44,132 |
| Return on total capital | 33.05% | 54.47% | 57.64% | 47.81% | 47.71% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $154,000K ÷ ($369,000K + $97,000K)
= 33.05%
Insperity Inc's return on total capital has displayed fluctuations over the five-year period studied, starting at 47.71% as of December 31, 2020, and steadily increasing to reach a peak of 57.64% by December 31, 2022. This upward trend indicates an improving efficiency in generating profits relative to the total capital employed. However, by the end of December 31, 2024, the return on total capital decreased to 33.05%, marking a considerable decline from the previous year. It is essential for stakeholders to further investigate the reasons behind this significant drop to understand the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024