Insperity Inc (NSP)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.80 | 0.82 | 1.00 | 0.89 | 0.99 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $369,400K ÷ ($369,400K + $93,624K)
= 0.80
The debt-to-capital ratio of Insperity Inc has shown fluctuation over the past five years, ranging from 0.80 to 1.00. The ratio indicates that in 2023 and 2022, approximately 80% and 82% of the company's capital were funded by debt, while in 2021, this proportion increased to 100%. It is noteworthy that in 2021 and 2019, the company relied more heavily on debt financing compared to the other years. The decreasing trend observed from 2021 to 2023 suggests a potential improvement in the company's capital structure and a reduced dependency on debt. However, the ratio still remains relatively high, indicating a significant reliance on debt to fund its operations and investments. Further analysis of the company's overall financial health and risk management strategies would be necessary to fully evaluate the implications of these variations in the debt-to-capital ratio.
Peer comparison
Dec 31, 2023