Insperity Inc (NSP)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.18 | 0.21 | 0.23 | 0.19 |
| Debt-to-capital ratio | 0.80 | 0.82 | 1.00 | 0.89 | 0.99 |
| Debt-to-equity ratio | 3.95 | 4.55 | — | 8.37 | 66.05 |
| Financial leverage ratio | 22.64 | 25.09 | — | 35.90 | 342.00 |
Insperity Inc's solvency ratios show a generally improving trend over the past five years. The debt-to-assets ratio has decreased from 0.23 in 2020 to 0.17 in 2023, indicating that the company has reduced its reliance on debt to finance its assets. The debt-to-capital ratio also demonstrates improvement, declining from 1.00 in 2021 to 0.80 in 2023. This signifies that the proportion of debt in the company's capital structure has decreased.
However, the debt-to-equity ratio has fluctuated significantly, reaching a high of 66.05 in 2019 before dropping to 3.95 in 2023. This suggests that the company has made efforts to lower its debt relative to its equity. The financial leverage ratio has followed a similar pattern, decreasing from 342.00 in 2019 to 22.64 in 2023, indicating a substantial reduction in financial leverage.
Overall, the solvency ratios reflect Insperity Inc's efforts to strengthen its financial position by managing its debt levels effectively and improving its capital structure. It is important to continue monitoring these ratios to ensure the company's long-term financial health and stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.29 | 18.27 | 23.57 | 24.61 | 25.80 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense.
Insperity Inc's interest coverage has shown an improving trend over the years. In 2022, the interest coverage was 51.98, reflecting the company's ability to cover its interest obligations by EBIT over 51 times. This indicates a strong financial position and lower risk of default due to interest payments.
In 2021 and 2020, the interest coverage ratios were 34.59 and 35.93 respectively, demonstrating the company's consistent ability to meet its interest payments comfortably.
Unfortunately, the data for 2023 and 2019 is not available in the provided table. However, based on the trend from 2020 to 2022, it can be inferred that the company's interest coverage remains robust.
Overall, Insperity Inc's interest coverage ratio indicates a healthy financial position with a strong ability to meet its interest obligations, providing a favorable signal to investors and creditors regarding the company's financial stability.