Insperity Inc (NSP)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	252,215	277,326	265,351	290,873	259,632	218,173	202,588	189,952	175,776	168,835	157,856	194,553	197,286	219,086	227,518	195,684	197,290	202,855	215,709	209,575
Long-term debt	US$ in thousands	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	369,400	269,400	239,400	169,400	144,400
Total stockholders’ equity	US$ in thousands	93,624	83,119	130,519	133,432	81,275	60,503	35,132	33,961	-1,774	97,006	87,262	73,644	44,132	40,639	44,638	-3,310	4,079	40,988	134,889	119,194
Return on total capital		54.47%	61.28%	53.08%	57.85%	57.61%	50.75%	50.08%	47.09%	47.81%	36.20%	34.57%	43.91%	47.71%	53.43%	54.95%	53.45%	72.14%	72.35%	70.89%	79.51%

December 31, 2023 calculation

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

To analyze Insperity Inc's return on total capital, we observe a consistent performance trend over the past eight quarters. The return on total capital has ranged from 46.58% to 55.53%, indicating the company's ability to generate profits from both equity and debt investments. The highest return was recorded in Q4 2022 at 55.53%, while the lowest was in Q1 2022 at 46.58%.

Overall, Insperity Inc has maintained a strong return on total capital, with most quarters exceeding 48%. This suggests efficient utilization of both equity and debt to generate profits for the company and its shareholders. The recent quarters show slight fluctuations, but the general trend indicates a solid performance in terms of generating returns on its invested capital.