showing the working

← Insperity

The business behind the dividend

MeasureNSPMedianFormula
Return on equity-15.2%10.6%Net income ÷ shareholders’ equity
Return on capital employed-2.4%10.0%Operating income ÷ (equity + total debt)
Owner earnings$7.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$-309.00m$155.08mOperating cash flow − capital expenditure
Operating margin-0.1%14.3%Operating income ÷ revenue
Net margin-0.1%10.1%Net income ÷ revenue
Debt to equity8.02x0.73xTotal debt ÷ shareholders’ equity
Interest cover-0.42x4.22xOperating income ÷ interest expense
Current ratio1.06x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital3.62x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals12.3%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity-15.2%93.8%181.9%221.0%313.2%174.3%127.3%109.0%174.3%
Return on capital employed-2.4%25.1%47.3%55.5%47.2%47.1%68.2%80.6%76.1%64.5%47.3%
Operating margin-0.1%1.8%3.4%4.2%3.5%4.5%4.3%4.7%3.9%3.6%3.6%
Net margin-0.1%1.4%2.6%3.0%2.5%3.2%3.5%3.5%2.6%2.2%2.6%
Debt to equity8.02x3.80x3.93x4.56x8.37x1.86x1.57x1.72x3.93x
Current ratio1.06x1.08x1.11x1.12x1.10x1.19x1.12x1.12x1.07x1.07x1.10x
Cash conversion5.71x1.16x1.94x2.10x2.51x1.36x1.36x2.53x2.20x2.10x