Insperity Inc (NSP)

Financial leverage 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
Total assets	US$ in thousands	2,119,660	1,996,470	1,865,270	2,039,970	2,039,260	1,781,510	1,892,910	1,940,080	1,753,080	1,734,050	1,728,080	1,769,080	1,584,280	1,523,280	1,517,730	1,522,410	1,395,000	1,292,120	1,317,000	1,350,980
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
Financial leverage ratio		22.64	24.02	14.29	15.29	25.09	29.44	53.88	57.13	—	17.88	19.80	24.02	35.90	37.48	34.00	—	342.00	31.52	9.76	11.33

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,119,660K ÷ $93,624K
= 22.64

Insperity Inc's financial leverage ratio has exhibited fluctuating trends over the past eight quarters. The financial leverage ratio measures the extent to which the company relies on debt to finance its operations and assets. A higher ratio indicates higher financial risk due to increased debt levels.

In Q4 2023, the financial leverage ratio stands at 22.64, showing a decrease from the previous quarter's ratio of 24.02. This reduction suggests a potentially improved financial risk position as the company may have lowered its debt levels or increased its equity.

Comparing Q4 2023 to the same quarter in the previous year, there has been a notable improvement in the financial leverage ratio as it decreased from 25.09 to 22.64. This indicates a potential strengthening of the company's financial position by reducing its dependency on debt financing.

However, fluctuations in the ratio over the past eight quarters, with highs in Q2 2022 and Q1 2022, may reflect shifts in the company's capital structure and financial strategy. The considerable decrease from Q2 2022 (53.88) to Q3 2022 (29.44) followed by a further decrease in Q4 2022 (25.09) suggests a significant adjustment in the company's leverage levels during that period.

Overall, the decreasing trend in the financial leverage ratio indicates a potential positive development towards a lower reliance on debt for Insperity Inc. However, continuous monitoring of the ratio is crucial to assess the company's ongoing capital structure decisions and their impact on financial risk.