SPS Commerce Inc (SPSC)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 12.26 11.01 10.54 10.75 11.46 11.39 10.95 10.86 11.43 11.73 10.35 10.32 11.15 10.35 9.16 9.31 9.31 9.97 8.59 9.44
Payables turnover 24.57 25.18 33.70 15.49 24.54 28.18 27.20 30.09 13.60 17.95 32.17 28.98 15.81 32.77 19.13 20.91 18.65 19.23 22.33 20.52
Working capital turnover 2.71 3.09 2.10 1.96 1.98 2.27 1.81 1.97 2.13 1.85 1.57 1.56 1.54 1.47 1.50 1.54 1.63 1.13 1.24 1.26

SPS Commerce Inc Activity Ratios Analysis:

1. Inventory Turnover: SPS Commerce Inc's inventory turnover ratio has been relatively stable around the range of 2.65 to 2.98 over the past few years. The slight increase in the inventory turnover ratio from 2.66 to 2.98 shows an improvement in how efficiently the company is managing its inventory.

2. Receivables Turnover: The receivables turnover ratio has shown an increasing trend, indicating that SPS Commerce Inc is collecting its receivables more efficiently. The ratio has steadily increased from 8.59 to 12.26 from June 2020 to December 2024, showcasing the company's effectiveness in managing its accounts receivables.

3. Payables Turnover: SPS Commerce Inc's payables turnover ratio has exhibited some fluctuations but generally shows a decreasing trend over the years. The ratio indicates how quickly the company is paying its suppliers. The decrease in payables turnover from 22.33 to 24.57 from June 2020 to December 2024 may imply that the company is taking longer to settle its payables.

4. Working Capital Turnover: The working capital turnover ratio reflects the efficiency of SPS Commerce Inc in utilizing its working capital to generate sales. The ratio has shown a steady increase from 1.13 to 3.09 from September 2020 to September 2024, indicating that the company has improved its ability to generate sales using its working capital efficiently.

Overall, while the inventory turnover and working capital turnover ratios demonstrate efficiency improvements, the payables turnover ratio suggests a need for SPS Commerce Inc to manage its payables more effectively to enhance its overall liquidity position and operational efficiency. The increasing trend in receivables turnover highlights the company's strong credit and collection policies.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — 124.46 122.46 122.34 125.80 124.22 — 124.36 123.43 123.46 128.92 132.81 137.11 137.83 137.48 137.40
Days of sales outstanding (DSO) days 29.78 33.15 34.64 33.94 31.84 32.06 33.32 33.62 31.92 31.11 35.27 35.35 32.74 35.25 39.85 39.19 39.20 36.60 42.51 38.66
Number of days of payables days 14.86 14.49 10.83 23.56 14.88 12.95 13.42 12.13 26.84 20.34 11.35 12.60 23.09 11.14 19.08 17.45 19.57 18.98 16.34 17.79

The days of inventory on hand (DOH) for SPS Commerce Inc have shown a gradual decrease from 137.40 days as of March 31, 2020, to 122.46 days as of June 30, 2023. This indicates that the company has been able to manage its inventory more efficiently over the years.

In terms of days of sales outstanding (DSO), the company has maintained relatively stable levels, ranging from 32.74 days as of December 31, 2021, to 39.85 days as of June 30, 2021. There was a significant decrease in DSO to 29.78 days as of December 31, 2024, suggesting improved collection efforts or more favorable credit terms with customers.

The number of days of payables reflects the time it takes for SPS Commerce Inc to pay its suppliers. The trend shows some fluctuations, with the number of days of payables ranging from 10.83 days as of June 30, 2024, to 26.84 days as of December 31, 2022. This may suggest changes in the company's payment policies or relationships with suppliers.

Overall, these activity ratios indicate that SPS Commerce Inc has been managing its inventory efficiently, maintaining stable DSO levels, and experiencing some variability in its payment practices.

Long-term

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
Fixed asset turnover 16.99 16.93 16.64 16.03 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
Total asset turnover 0.62 0.61 0.68 0.67 0.65 0.65 0.67 0.68 0.67 0.68 0.67 0.65 0.63 0.62 0.61 0.60 0.59 0.62 0.64 0.65

SPS Commerce Inc's long-term activity ratios reflect the efficiency with which the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio measures how efficiently the company is using its fixed assets to generate revenue. From March 31, 2020, to December 31, 2024, the fixed asset turnover ratio has shown a generally increasing trend, indicating improved efficiency in generating sales from fixed assets. The ratio increased from 11.92 in March 2020 to 16.99 in December 2024. This suggests that SPS Commerce Inc has become more effective in utilizing its fixed assets over time.

2. Total Asset Turnover: This ratio measures how efficiently the company is using all its assets to generate revenue. The total asset turnover ratio fluctuated within a relatively narrow range from March 31, 2020, to December 31, 2024. Although there were minor fluctuations, the ratio remained between 0.59 and 0.68 during this period. This indicates that while there might have been variations in the company's ability to generate sales from its total assets, the fluctuations were not significant.

Overall, the analysis of SPS Commerce Inc's long-term activity ratios suggests that the company has been improving its efficiency in utilizing both fixed and total assets to generate sales over the years. The increasing trend in fixed asset turnover and relatively stable total asset turnover ratios indicate positive operational performance in terms of asset utilization.