SPS Commerce Inc (SPSC)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	536,910	450,875	385,276	312,630	279,124
Property, plant and equipment	US$ in thousands	36,043	35,458	31,901	26,432	23,752
Fixed asset turnover		14.90	12.72	12.08	11.83	11.75

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $536,910K ÷ $36,043K
= 14.90

The fixed asset turnover ratio for SPS Commerce Inc. has been showing an increasing trend over the past five years, reaching 14.90 in 2023 from 11.75 in 2019. This indicates that the company generates $14.90 in revenue for every dollar invested in fixed assets in 2023. The consistent improvement in this ratio reflects the company's ability to efficiently utilize its fixed assets to generate sales. A higher fixed asset turnover ratio typically signifies better asset utilization and operational efficiency. This trend suggests that SPS Commerce Inc. has been effectively managing and leveraging its fixed assets to drive revenue growth over the years.