Insperity Inc (NSP)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	252,215	259,632	175,776	197,286	197,290
Long-term debt	US$ in thousands	369,400	369,400	369,400	369,400	269,400
Total stockholders’ equity	US$ in thousands	93,624	81,275	-1,774	44,132	4,079
Return on total capital		54.47%	57.61%	47.81%	47.71%	72.14%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $252,215K ÷ ($369,400K + $93,624K)
= 54.47%

Insperity Inc's return on total capital has shown fluctuations over the past five years. In 2019, the company had the highest return on total capital at 68.24%, indicating efficient utilization of its total capital to generate profits. However, there was a noticeable decrease in 2020 to 47.08%, which was maintained at a similar level in 2021 at 47.15%.

The return on total capital increased slightly in 2022 to 55.53%, suggesting improved performance in utilizing the company's total capital resources. However, there was another decrease in 2023, falling to 47.20%. Despite the fluctuations, the company has generally demonstrated a strong ability to generate returns on the total capital employed in its operations.

It is essential for Insperity Inc to continue monitoring and managing its total capital efficiently to ensure sustainable profitability and long-term value creation for its stakeholders.