SPS Commerce Inc (SPSC)
Working capital 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 |
Total current assets | US$ in thousands | 381,907 | 344,647 | 406,938 | 420,288 | 401,441 | 359,739 | 384,976 | 346,382 | 322,814 | 339,273 | 365,549 | 351,467 | 352,443 | 343,255 | 323,162 | 296,874 | 271,356 | 337,008 | 303,977 | 289,854 |
Total current liabilities | US$ in thousands | 146,684 | 146,331 | 128,546 | 134,216 | 130,669 | 132,871 | 111,968 | 106,961 | 110,642 | 105,466 | 101,239 | 94,428 | 102,872 | 94,928 | 91,437 | 83,432 | 80,132 | 70,389 | 66,735 | 61,903 |
Working capital turnover | 2.71 | 3.09 | 2.10 | 1.96 | 1.98 | 2.27 | 1.81 | 1.97 | 2.13 | 1.85 | 1.57 | 1.56 | 1.54 | 1.47 | 1.50 | 1.54 | 1.63 | 1.13 | 1.24 | 1.26 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $637,765K ÷ ($381,907K – $146,684K)
= 2.71
The working capital turnover ratio for SPS Commerce Inc has shown fluctuations over the past few quarters, reflecting changes in the efficiency of the company's working capital management.
From March 31, 2020, to June 30, 2020, the ratio slightly decreased from 1.26 to 1.24, indicating a marginal decline in the efficiency of working capital utilization. This trend continued until September 30, 2020, when the ratio dropped further to 1.13, suggesting potential inefficiencies in utilizing working capital during that period.
However, starting from December 31, 2020, there was a significant improvement in the working capital turnover ratio, which increased to 1.63. This improvement continued into the following quarters, with the ratio staying relatively consistent around the 1.50 to 1.60 range.
Notably, by September 30, 2022, there was a substantial increase in the working capital turnover ratio to 1.85, indicating a more efficient use of working capital. This positive trend continued into the following quarters, with the ratio reaching its peak at 3.09 as of September 30, 2024, showing a significant enhancement in working capital management efficiency.
While there was a slight decrease in the ratio in December 31, 2024, to 2.71, overall, the working capital turnover ratio has shown an upward trajectory, reflecting improvements in the company's ability to generate revenue from its working capital investments.
This analysis suggests that SPS Commerce Inc has made strides in optimizing its working capital efficiency, which can positively impact its overall financial performance and liquidity management.
Peer comparison
Dec 31, 2024