SPS Commerce Inc (SPSC)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	536,910	513,963	492,788	471,550	450,875	431,613	415,014	400,375	385,276	365,828	347,498	328,532	312,630	302,055	293,426	286,382	279,124	271,580	263,520	256,082
Property, plant and equipment	US$ in thousands	36,043	36,209	35,211	35,078	35,458	32,923	32,000	32,261	31,901	31,036	29,046	26,606	26,432	25,053	25,510	24,035	23,752	20,757	20,597	20,710
Fixed asset turnover		14.90	14.19	14.00	13.44	12.72	13.11	12.97	12.41	12.08	11.79	11.96	12.35	11.83	12.06	11.50	11.92	11.75	13.08	12.79	12.37

December 31, 2023 calculation

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

The fixed asset turnover ratio for SPS Commerce Inc. has shown a consistent upward trend over the past eight quarters, indicating that the company is becoming more efficient in generating revenue from its fixed assets. The ratio has steadily increased from 12.41 in Q1 2022 to 14.90 in Q4 2023.

This improvement suggests that SPS Commerce Inc. is effectively utilizing its fixed assets to generate sales, as each dollar invested in fixed assets is generating more revenue. A higher fixed asset turnover ratio is generally seen as favorable, as it reflects efficient asset utilization and operational productivity.

Overall, the increasing trend in fixed asset turnover for SPS Commerce Inc. indicates a positive operational performance and effective management of fixed assets to drive revenue generation.