SPS Commerce Inc (SPSC)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	536,910	513,963	492,788	471,550	450,875	431,613	415,014	400,375	385,276	365,828	347,498	328,532	312,630	302,055	293,426	286,382	279,124	271,580	263,520	256,082
Receivables	US$ in thousands	46,840	45,141	44,992	43,437	39,435	36,787	40,105	38,778	34,562	35,330	37,936	35,270	33,578	30,289	34,177	30,336	31,532	29,383	30,747	28,301
Receivables turnover		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	8.85	9.24	8.57	9.05

December 31, 2023 calculation

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

The receivables turnover ratio for SPS Commerce Inc. has displayed relatively consistent performance over the past eight quarters, ranging from 10.32 to 11.73. The higher the turnover ratio, the more efficiently the company is collecting on its accounts receivables.

In the latest quarter, Q4 2023, the receivables turnover ratio was 11.46, indicating that SPS Commerce Inc. collected its outstanding receivables approximately 11.46 times during the period. This suggests the company efficiently managed its receivables, converting them into cash quickly.

The trend in the receivables turnover ratio shows that SPS Commerce Inc. has been consistently effective in collecting payments from its customers, with some fluctuations quarter-over-quarter. It is important for the company to maintain a stable or increasing receivables turnover ratio to ensure healthy cash flow and liquidity.

Overall, based on the receivables turnover data provided, SPS Commerce Inc. appears to have a solid collection process in place, efficiently managing its accounts receivables and converting them into cash in a timely manner.