SPS Commerce Inc (SPSC)
Total asset 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 |
| Total assets | US$ in thousands | 823,844 | 672,914 | 615,846 | 526,458 | 447,440 |
| Total asset turnover | 0.65 | 0.67 | 0.63 | 0.59 | 0.62 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $536,910K ÷ $823,844K
= 0.65
The total asset turnover ratio of SPS Commerce Inc. has fluctuated over the past five years, ranging from 0.59 to 0.67. This ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher ratio is generally preferred as it implies better asset utilization.
In 2023, the total asset turnover decreased to 0.65 from the previous year's 0.67. This decrease suggests that the company generated $0.65 in sales for every $1 of assets it held during the year. While the ratio declined, it still indicates decent efficiency in utilizing its assets to generate revenue.
Overall, SPS Commerce Inc. has maintained a relatively stable total asset turnover ratio over the years, showcasing a consistent ability to efficiently generate sales using its assets. Further analysis and comparison with industry peers may provide deeper insights into the company's performance.
Peer comparison
Dec 31, 2023