Insperity Inc (NSP)
Debt-to-equity 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-equity ratio | 3.80 | 3.93 | 4.56 | — | 8.37 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $369,000K ÷ $97,000K
= 3.80
The debt-to-equity ratio for Insperity Inc has shown a decreasing trend over the past few years, indicating a strengthening financial position in terms of leverage.
As of December 31, 2020, the ratio stood at a relatively high 8.37, suggesting that the company had a higher level of debt compared to equity at that point in time. In the subsequent year, there is no data provided for December 31, 2021, but from the available numbers, we see a significant improvement in financial leverage.
By December 31, 2022, the ratio had decreased to 4.56, indicating a reduction in the level of debt relative to equity, which reflects a positive trend towards a more balanced capital structure. This favorable trend continued in the following years, with the ratio further declining to 3.93 by December 31, 2023, and then to 3.80 by December 31, 2024.
Overall, the decreasing trend in the debt-to-equity ratio suggests that Insperity Inc is gradually reducing its reliance on debt financing and improving its financial health by increasing the proportion of equity in its capital structure. This may indicate a lower financial risk and enhanced stability in the company's operations.
Peer comparison
Dec 31, 2024