SPS Commerce Inc (SPSC)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	637,765	611,823	583,798	560,618	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
Receivables	US$ in thousands	52,035	55,570	55,397	52,135	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
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

December 31, 2024 calculation

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

The receivables turnover for SPS Commerce Inc has shown a fluctuating trend over the past years. Starting at 9.44 for March 31, 2020, the ratio decreased slightly to 8.59 by June 30, 2020, before gradually increasing to 12.26 by December 31, 2024.

Overall, the trend indicates that the company is improving its efficiency in collecting receivables from customers. A higher turnover ratio suggests that SPS Commerce Inc is collecting its accounts receivable more frequently, which is a positive sign for the company's liquidity and cash flow management.

However, it is important to note that a very high receivables turnover ratio may also indicate stringent credit policies that could potentially impact sales volume. Thus, it is crucial for the company to strike a balance between efficiently collecting receivables and maintaining good customer relationships to support sustainable growth.