Insperity Inc (NSP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,119,660 | 2,039,260 | 1,753,080 | 1,584,280 | 1,395,000 |
| Total stockholders’ equity | US$ in thousands | 93,624 | 81,275 | -1,774 | 44,132 | 4,079 |
| Financial leverage ratio | 22.64 | 25.09 | — | 35.90 | 342.00 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,119,660K ÷ $93,624K
= 22.64
The financial leverage ratio of Insperity Inc has been exhibiting a decreasing trend over the years. From 2019 to 2023, the ratio declined from an extremely high value of 342.00 to 22.64. This suggests that the company has been effectively managing its financial leverage, indicating a lower reliance on debt financing relative to its equity. The significant drop in the ratio between 2019 and 2020, from 342.00 to 35.90, reflects a substantial improvement in the company's capital structure and reduction in financial risk. The subsequent decrease to 22.64 by the end of 2023 indicates a continued strengthening of the company's financial position and a decrease in financial risk associated with higher levels of debt. Overall, the downward trend in the financial leverage ratio implies a more conservative approach to financing operations and investment activities by Insperity Inc in recent years.
Peer comparison
Dec 31, 2023