Insperity Inc (NSP)

Debt-to-equity 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-equity ratio		3.95	4.44	2.83	2.77	4.55	6.11	10.51	10.88	—	3.81	4.23	5.02	8.37	9.09	8.28	—	66.05	5.84	1.26	1.21

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $369,400K ÷ $93,624K
= 3.95

The debt-to-equity ratio for Insperity Inc has shown fluctuations over the past eight quarters, ranging from a low of 2.77 in Q1 2023 to a high of 10.88 in Q1 2022. The ratio indicates that the company has been utilizing more debt relative to equity in its capital structure.

The downward trend from Q3 2022 to Q1 2023 suggests that the company has been reducing its reliance on debt financing, which may be viewed positively by investors and creditors as it indicates improved financial stability and potentially lower financial risk.

However, the ratio has remained relatively high overall, peaking at 10.88 in Q1 2022, which may raise concerns about the company's leverage and ability to meet its financial obligations. It is important for Insperity Inc to carefully manage its debt levels to maintain a healthy balance between debt and equity in order to sustain long-term growth and profitability.