SPS Commerce Inc (SPSC)

Receivables 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
Receivables	US$ in thousands	46,840	39,435	34,562	33,578	31,532
Receivables turnover		11.46	11.43	11.15	9.31	8.85

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $536,910K ÷ $46,840K
= 11.46

The receivables turnover ratio for SPS Commerce Inc. has shown a consistent and improving trend over the past five years. The ratio increased from 8.85 in 2019 to 11.46 in 2023, indicating that the company is collecting its accounts receivable more efficiently.

A higher receivables turnover ratio suggests that SPS Commerce is managing its receivables effectively and collecting outstanding payments from customers at a faster rate. This can be a positive sign of strong customer relationships, efficient credit policies, and effective collection efforts.

The increasing trend in receivables turnover reflects positively on the company's liquidity and cash flow position, as a higher turnover ratio means the company is converting its credit sales into cash more quickly. This could lead to improved working capital management and overall financial health for SPS Commerce Inc.

Overall, the rising trend in receivables turnover for SPS Commerce indicates effective management of accounts receivable and a potentially positive outlook for the company's financial performance and stability.