Insperity Inc (NSP)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.80	0.82	0.74	0.73	0.82	0.86	0.91	0.92	1.00	0.79	0.81	0.83	0.89	0.90	0.89	1.01	0.99	0.85	0.56	0.55

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 eight quarters. Starting from Q1 2022 at 0.92, the ratio has generally decreased until Q3 2023 where it reached a low of 0.73. Subsequently, in Q4 2023, the ratio increased slightly to 0.80.

The decreasing trend in the debt-to-capital ratio indicates that the company has been using more equity financing relative to debt financing over the period analyzed. This can be seen as a positive sign, suggesting that the company is relying less on debt to fund its operations and investments. However, the increase in the ratio for Q4 2023 could indicate a shift towards more debt in the company's capital structure compared to the previous quarter.

Overall, Insperity Inc's debt-to-capital ratio has shown variability but has generally trended downwards in recent quarters, indicating a potential improvement in its financial leverage and risk profile. Nevertheless, further monitoring of the ratio in future periods is advisable to assess the company's ongoing capital structure management.