Insperity Current Ratio vs. Return On Equity
| NSP Stock | USD 78.85 0.40 0.51% |
Current Ratio | First Reported 2010-12-31 | Previous Quarter 1.11070404 | Current Value 1.44 | Quarterly Volatility 0.10688057 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.12 | 0.1599 |
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| Net Profit Margin | 0.0138 | 0.0264 |
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| Operating Profit Margin | 0.0203 | 0.0337 |
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| Pretax Profit Margin | 0.0212 | 0.0347 |
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| Return On Assets | 0.0483 | 0.0809 |
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For Insperity profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Insperity to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Insperity utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Insperity's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Insperity over time as well as its relative position and ranking within its peers.
Insperity |
Is Human Resource & Employment Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Insperity. If investors know Insperity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Insperity listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.94) | Dividend Share 2.34 | Earnings Share 3.16 | Revenue Per Share 173.192 | Quarterly Revenue Growth 0.006 |
The market value of Insperity is measured differently than its book value, which is the value of Insperity that is recorded on the company's balance sheet. Investors also form their own opinion of Insperity's value that differs from its market value or its book value, called intrinsic value, which is Insperity's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Insperity's market value can be influenced by many factors that don't directly affect Insperity's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Insperity's value and its price as these two are different measures arrived at by different means. Investors typically determine if Insperity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Insperity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Insperity Return On Equity vs. Current Ratio Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Insperity's current stock value. Our valuation model uses many indicators to compare Insperity value to that of its competitors to determine the firm's financial worth. Insperity is rated below average in current ratio category among its peers. It is considered to be number one stock in return on equity category among its peers reporting about 1.00 of Return On Equity per Current Ratio. At this time, Insperity's Current Ratio is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Insperity by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Insperity Return On Equity vs. Current Ratio
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Insperity |
| = | 1.15 X |
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Insperity |
| = | 1.15 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Insperity Return On Equity Comparison
Insperity is currently under evaluation in return on equity category among its peers.
Insperity Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Insperity, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Insperity will eventually generate negative long term returns. The profitability progress is the general direction of Insperity's change in net profit over the period of time. It can combine multiple indicators of Insperity, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 9 K | 9.4 K | |
| Operating Income | 218.5 M | 229.5 M | |
| Income Before Tax | 225.1 M | 236.3 M | |
| Total Other Income Expense Net | 6.5 M | 6.9 M | |
| Net Income | 171.4 M | 180 M | |
| Income Tax Expense | 53.7 M | 56.4 M | |
| Net Income Applicable To Common Shares | 206.3 M | 216.6 M | |
| Net Income From Continuing Ops | 190 M | 99.1 M | |
| Non Operating Income Net Other | 10.8 M | 11.3 M | |
| Interest Income | 30.2 M | 31.7 M | |
| Net Interest Income | 4.7 M | 5 M | |
| Change To Netincome | 193.6 M | 203.3 M | |
| Net Income Per Share | 4.53 | 4.76 | |
| Income Quality | 1.16 | 1.61 | |
| Net Income Per E B T | 0.76 | 0.52 |
Insperity Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Insperity. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Insperity position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Insperity's important profitability drivers and their relationship over time.
Use Insperity in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Insperity position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Insperity will appreciate offsetting losses from the drop in the long position's value.Insperity Pair Trading
Insperity Pair Trading Analysis
The ability to find closely correlated positions to Insperity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Insperity when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Insperity - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Insperity to buy it.
The correlation of Insperity is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Insperity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Insperity moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Insperity can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Insperity position
In addition to having Insperity in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Chemicals Makers
Companies developing chemicals for crops, soil as well as human, and animals. The Chemicals Makers theme has 41 constituents at this time.
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Additional Tools for Insperity Stock Analysis
When running Insperity's price analysis, check to measure Insperity's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Insperity is operating at the current time. Most of Insperity's value examination focuses on studying past and present price action to predict the probability of Insperity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Insperity's price. Additionally, you may evaluate how the addition of Insperity to your portfolios can decrease your overall portfolio volatility.