SPS Commerce Inc (SPSC)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	210,714	204,169	198,066	190,592	182,069	174,570	167,654	160,640	153,065	147,159	142,897	137,097	131,678	122,964	113,666	106,262	99,836	96,824	95,042	94,416
Inventory	US$ in thousands	—	—	—	—	0	59,525	56,250	53,844	52,755	50,082	0	46,710	44,529	41,593	40,149	38,666	37,502	36,562	35,797	35,543
Inventory turnover		—	—	—	—	—	2.93	2.98	2.98	2.90	2.94	—	2.94	2.96	2.96	2.83	2.75	2.66	2.65	2.66	2.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $210,714K ÷ $—K
= —

The inventory turnover ratio for SPS Commerce Inc has shown a relatively stable trend over the past few years, hovering around the range of 2.65 to 2.96. This ratio indicates how efficiently the company is managing its inventory by measuring how many times a company sells and replaces its inventory during a specific period.

From March 31, 2020, to June 30, 2022, the inventory turnover remained in the range of 2.66 to 2.94, showing consistency in inventory management. There was a slight increase in the ratio from March 2021 to September 2021, indicating a potential improvement in inventory turnover efficiency during that period.

However, from September 30, 2021, to March 31, 2024, the inventory turnover ratio fluctuated between 2.93 and 2.98, suggesting some variability in managing inventory levels during these periods. Notably, there are missing data points for the inventory turnover ratio in the later quarters of 2024, which may indicate incomplete information.

Overall, the inventory turnover ratio of SPS Commerce Inc demonstrates a stable performance in managing inventory efficiently, with room for improvement in certain periods where the ratio fluctuated. Monitoring this ratio consistently can help evaluate the company's inventory management effectiveness and identify areas for optimization.