SPS Commerce Inc (SPSC)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	381,907	401,441	322,814	352,443	271,356
Total current liabilities	US$ in thousands	146,684	130,669	110,642	102,872	80,132
Current ratio		2.60	3.07	2.92	3.43	3.39

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $381,907K ÷ $146,684K
= 2.60

The current ratio of SPS Commerce Inc has shown a generally positive trend over the past five years, reflecting the company's ability to meet its short-term obligations with its current assets.

As of December 31, 2020, the current ratio was 3.39, indicating that the company had $3.39 in current assets for every $1 in current liabilities. This suggests a strong liquidity position for the company at that time.

The ratio continued to improve slightly, reaching 3.43 by December 31, 2021. This signifies that the company's liquidity position strengthened further, indicating a better ability to cover its short-term obligations.

However, there was a slight decrease in the current ratio to 2.92 by December 31, 2022. Although the ratio dropped, it still indicates that the company had more than enough current assets to cover its short-term liabilities.

By December 31, 2023, the current ratio increased to 3.07, showing a recovery in liquidity. This improvement suggests that the company was able to efficiently manage its short-term obligations and maintain a healthy liquidity position.

The ratio then decreased to 2.60 by December 31, 2024, which still indicates a relatively good liquidity position, although not as robust as in previous years. The company may need to focus on maintaining or improving its current ratio to ensure its ability to meet short-term obligations going forward.