SPS Commerce Inc (SPSC)

Total asset 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
Total assets	US$ in thousands	823,844	787,408	735,538	696,927	672,914	637,090	622,776	613,308	615,846	591,283	572,278	549,837	526,458	487,686	461,663	439,819	447,440	426,597	418,607	407,197
Total asset turnover		0.65	0.65	0.67	0.68	0.67	0.68	0.67	0.65	0.63	0.62	0.61	0.60	0.59	0.62	0.64	0.65	0.62	0.64	0.63	0.63

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $536,910K ÷ $823,844K
= 0.65

The total asset turnover ratio for SPS Commerce Inc. has remained relatively stable over the past eight quarters, fluctuating around the range of 0.65 to 0.68. This ratio indicates that SPS Commerce Inc. generates approximately $0.65 to $0.68 in revenue for every dollar of total assets it holds.

A total asset turnover ratio below 1 suggests that the company may not be efficiently utilizing its assets to generate revenue. In this case, SPS Commerce Inc. might have some room for improvement in maximizing the productivity of its assets.

Overall, a consistent total asset turnover ratio at this level could indicate that SPS Commerce Inc. has a stable business model and operational efficiency, but there may be opportunities for further optimization to enhance profitability and return on assets.