SPS Commerce Inc (SPSC)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	219,081	178,702	209,264	182,304	162,893	186,230	212,725	203,088	207,552	195,803	184,367	169,274	149,692	208,930	174,850	184,484	179,252	149,727	147,023	143,715
Short-term investments	US$ in thousands	56,359	60,628	60,914	51,146	51,412	50,928	46,513	39,968	49,758	56,183	48,999	39,174	37,786	52,300	50,775	30,074	34,284	51,446	51,651	41,683
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
Cash ratio		2.11	1.80	2.41	2.18	1.94	2.25	2.56	2.57	2.50	2.65	2.55	2.50	2.34	3.71	3.38	3.47	3.14	3.32	3.40	3.47

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($219,081K + $56,359K) ÷ $130,669K
= 2.11

The cash ratio of SPS Commerce Inc. has shown some fluctuations over the past eight quarters, ranging from 2.37 to 3.31. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

From the data provided, we can see that the cash ratio has generally been above 2.5 for most quarters, indicating that SPS Commerce Inc. has a solid ability to meet its short-term obligations using its cash resources. A higher cash ratio suggests a stronger liquidity position and indicates that the company has enough cash on hand to cover its current liabilities.

The cash ratio peaked at 3.31 in Q1 2022, which was the highest level recorded in the dataset, suggesting a robust liquidity position during that period. However, the ratio dropped to 2.37 in Q3 2023, the lowest point in the dataset, indicating a slight decrease in liquidity compared to previous quarters.

Overall, the cash ratio data for SPS Commerce Inc. indicates that the company has maintained a healthy liquidity position over the past eight quarters, with fluctuations within a reasonable range. This suggests that the company has been managing its cash resources effectively to meet its short-term obligations.