Insperity Inc (NSP)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 154,000 | 191,244 | 248,658 | 240,431 | 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 |
| Interest expense (ttm) | US$ in thousands | 28,000 | 28,198 | 28,198 | 28,198 | 27,198 | 25,509 | 22,591 | 18,282 | 14,207 | 10,619 | 8,500 | 7,784 | 7,458 | 7,241 | 7,009 | 7,253 | 8,016 | 8,517 | 8,908 | 8,328 |
| Interest coverage | 5.50 | 6.78 | 8.82 | 8.53 | 9.27 | 10.87 | 11.75 | 15.91 | 18.27 | 20.55 | 23.83 | 24.40 | 23.57 | 23.32 | 22.52 | 26.82 | 24.61 | 25.72 | 25.54 | 23.50 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $154,000K ÷ $28,000K
= 5.50
Insperity Inc's interest coverage ratio has exhibited a generally decreasing trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio, which measures the company's ability to service its interest payments on debt, stood at a healthy level of 23.50 on March 31, 2020.
The ratio saw a gradual increase over the next few quarters, reaching a peak of 26.82 on March 31, 2021. However, starting from June 30, 2021, the interest coverage ratio began to decline, showing some fluctuations but overall on a downward trajectory.
As of December 31, 2024, the interest coverage ratio had decreased to 5.50, indicating a potential concern regarding Insperity Inc's ability to cover its interest expenses with earnings. This declining trend suggests that the company may be facing challenges in generating sufficient earnings to cover its interest obligations, which could be further exacerbated if not addressed in a timely manner.
Peer comparison
Dec 31, 2024