SPS Commerce Inc (SPSC)

Receivables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 637,765 536,910 450,875 385,276 312,630
Receivables US$ in thousands 52,035 46,840 39,435 34,562 33,578
Receivables turnover 12.26 11.46 11.43 11.15 9.31

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $637,765K ÷ $52,035K
= 12.26

The receivables turnover for SPS Commerce Inc has been showing a positive trend over the years, increasing from 9.31 in December 31, 2020 to 12.26 in December 31, 2024. This indicates that the company is collecting its accounts receivable at a more efficient rate. A higher receivables turnover ratio suggests that the company is able to collect outstanding receivables more quickly, which can improve cash flow and liquidity. Overall, the increasing trend in receivables turnover reflects positively on SPS Commerce Inc's management of its accounts receivable and financial efficiency.