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Insperity (Insperity) ROE %

: 88.54% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Insperity's annualized net income for the quarter that ended in Dec. 2023 was $78 Mil. Insperity's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $88 Mil. Therefore, Insperity's annualized ROE % for the quarter that ended in Dec. 2023 was 88.54%.

The historical rank and industry rank for Insperity's ROE % or its related term are showing as below:

NSP' s ROE % Range Over the Past 10 Years
Min: 12.25   Med: 192.03   Max: 585.86
Current: 164.17

During the past 13 years, Insperity's highest ROE % was 585.86%. The lowest was 12.25%. And the median was 192.03%.

NSP's ROE % is ranked better than
98.47% of 1044 companies
in the Business Services industry
Industry Median: 8.61 vs NSP: 164.17

Insperity ROE % Historical Data

The historical data trend for Insperity's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Insperity Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 369.64 573.47 585.86 451.19 195.98

Insperity Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 215.54 352.46 39.08 166.01 88.54

Competitive Comparison

For the Staffing & Employment Services subindustry, Insperity's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Insperity ROE % Distribution

For the Business Services industry and Industrials sector, Insperity's ROE % distribution charts can be found below:

* The bar in red indicates where Insperity's ROE % falls into.



Insperity ROE % Calculation

Insperity's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=171.382/( (81.275+93.624)/ 2 )
=171.382/87.4495
=195.98 %

Insperity's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=78.244/( (83.119+93.624)/ 2 )
=78.244/88.3715
=88.54 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Insperity  (NYSE:NSP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=78.244/88.3715
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(78.244 / 6320.812)*(6320.812 / 2058.0645)*(2058.0645 / 88.3715)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.24 %*3.0712*23.2888
=ROA %*Equity Multiplier
=3.81 %*23.2888
=88.54 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=78.244/88.3715
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (78.244 / 96.184) * (96.184 / 89.084) * (89.084 / 6320.812) * (6320.812 / 2058.0645) * (2058.0645 / 88.3715)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8135 * 1.0797 * 1.41 % * 3.0712 * 23.2888
=88.54 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Insperity ROE % Related Terms

Thank you for viewing the detailed overview of Insperity's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Insperity (Insperity) Business Description

Traded in Other Exchanges
Address
19001 Crescent Springs Drive, Kingwood, TX, USA, 77339
Insperity Inc is a company that primarily provides a wide range of human resources and business solutions that help businesses improve their performance. Small and midsize enterprises are the company's primary target customers. Most of the company's products are offered through the company's Workforce Optimization and Workforce Synchronization solutions, which comprise various human resource functions, such as payroll and employment administration, employee benefits and compensation, government compliance, performance management, training and development services, and human capital management. The company generates all of its revenue in the United States.
Executives
Ellen H Masterson director P O BOX 3247, HOUSTON TX 77253-3247
Richard G Rawson director, officer: President C/O INSPERITY, 19001 CRESCENT SPRINGS DR, KINGWOOD TX 77339
Arthur A Arizpe officer: EVP of Client Services and COO 19001 CRESCENT SPRINGS DR, C/O INSPERITY, KINGWOOD TX 77339
Paul J Sarvadi director, officer: Chairman of the Board & CEO C/O INSPERITY, 19001 CRESCENT SPRINGS DR, KINGWOOD TX 77339
Daniel D Herink officer: SVP Legal, Gen Counsel & Sec 19001 CRESCENT SPRINGS DRIVE, KINGWOOD TX 77339
James D Allison officer: SVP of Gross Profit Operations C/O INSPERITY, INC., 19001 CRESCENT SPRINGS DRIVE, KINGWOOD TX 77339
John M Morphy director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Douglas S Sharp officer: SVP Finance, CFO & Treasurer C/O INSPERITY, 19001 CRESCENT SPRINGS DR, KINGWOOD TX 77339
Tim Clifford director C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Jay E Mincks officer: EVP of Sales & Marketing C/O INSPERITY, 19001 CRESCENT SPRINGS DR, KINGWOOD TX 77339
Eli Jones director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Randall Mehl director 8620 N DEAN CIR, RIVER HILLS WI 53217
Latha Ramchand director 19001 CRESCENT SPRINGS DRIVE, KINGWOOD TX 77339
John L Lumelleau director 19001 CRESCENT SPRINGS DRIVE, KINGWOOD TX 77339
Austin P Young director 6200 ARNOT, HOUSTON TX 77007

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