Insperity Inc (NSP)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.79 | 0.80 | 0.82 | 1.00 | 0.89 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $369,000K ÷ ($369,000K + $97,000K)
= 0.79
The debt-to-capital ratio of Insperity Inc has shown some fluctuations over the past five years. As of December 31, 2020, the ratio was 0.89, indicating that 89% of the company's capital was funded through debt. This ratio increased to 1.00 by December 31, 2021, suggesting a higher reliance on debt financing.
However, in the subsequent years, there was a downward trend in the ratio. By December 31, 2022, it decreased to 0.82, further dropping to 0.80 by December 31, 2023, and to 0.79 by December 31, 2024. These lower ratios imply that the company has reduced its dependence on debt to fund its operations and investments.
Overall, the decreasing trend in the debt-to-capital ratio indicates a potentially improved financial position and reduced financial risk for Insperity Inc over the analyzed period. However, it is essential to continue monitoring this ratio to ensure a balanced capital structure and sustainable growth strategy.
Peer comparison
Dec 31, 2024