Insperity Inc (NSP)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	252,215	277,326	265,351	290,873	259,632	218,173	202,588	189,952	175,776	168,835	157,856	194,553	197,286	219,086	227,518	195,684	197,290	202,855	215,709	209,575
Interest expense (ttm)	US$ in thousands	27,137	25,448	22,483	18,487	14,207	10,619	8,500	7,784	7,458	7,241	7,009	7,253	8,016	8,517	8,908	8,328	7,647	6,758	5,810	5,279
Interest coverage		9.29	10.90	11.80	15.73	18.27	20.55	23.83	24.40	23.57	23.32	22.52	26.82	24.61	25.72	25.54	23.50	25.80	30.02	37.13	39.70

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $252,215K ÷ $27,137K
= 9.29

The interest coverage ratio for Insperity Inc has shown significant improvement over the quarters, starting from a relatively low level of 28.97 in Q2 2022 to a strong position of 586.78 in Q1 2023. This indicates that the company's ability to meet its interest obligations has improved substantially, reflecting a healthier financial position and increased profitability. The trend suggests that Insperity Inc has been effectively managing its debt and generating sufficient earnings to cover its interest expenses comfortably.