SPS Commerce Inc (SPSC)

Working capital 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 current assets	US$ in thousands	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	291,621	273,524	272,773	257,249
Total current liabilities	US$ in thousands	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	68,030	60,533	58,400	53,382
Working capital turnover		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	1.25	1.28	1.23	1.26

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $536,910K ÷ ($401,441K – $130,669K)
= 1.98

The working capital turnover ratio for SPS Commerce Inc. has shown some fluctuations over the past eight quarters. The ratio indicates how efficiently the company is using its working capital to generate sales revenue.

In Q3 2023, the working capital turnover ratio reached its peak at 2.27, suggesting that SPS Commerce Inc. was able to convert its working capital into sales at a higher rate compared to the previous quarters. This could be a sign of effective management of working capital resources.

However, in Q2 2022, the ratio dropped to 1.57, reflecting a potential inefficiency in utilizing working capital to generate revenue during that period.

Overall, the trend in the working capital turnover ratio for SPS Commerce Inc. shows some variability, with periods of improvement and decline. Further analysis of the company's working capital management practices and operational efficiency may provide insights into the fluctuations observed in the ratio.