SPS Commerce Inc (SPSC)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 24.54 | 13.60 | 15.81 | 18.65 | 21.58 | |
| Number of days of payables | days | 14.88 | 26.84 | 23.09 | 19.57 | 16.91 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 24.54
= 14.88
The number of days of payables for SPS Commerce Inc. has been fluctuating over the past five years. In 2023, the number of days of payables is at 14.88 days, indicating that, on average, the company takes approximately 14.88 days to pay its suppliers or vendors. This represents a significant decrease compared to the prior year, where it took the company 26.84 days to settle its payables.
The trend over the past five years shows a general decrease in the number of days of payables, suggesting that SPS Commerce Inc. has been managing its payables more efficiently over time. A lower number of days of payables may reflect improved working capital management and stronger relationships with suppliers. However, it's important to note that a very low number of days of payables could also indicate potential issues with cash flow or supplier relationships that may need further investigation.
Peer comparison
Dec 31, 2023