SPS Commerce Inc (SPSC)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	401,441	322,814	352,443	271,356	291,621
Total current liabilities	US$ in thousands	130,669	110,642	102,872	80,132	68,030
Current ratio		3.07	2.92	3.43	3.39	4.29

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $401,441K ÷ $130,669K
= 3.07

The current ratio of SPS Commerce Inc. has fluctuated over the past five years, ranging from 2.92 in 2022 to 4.29 in 2019. The company's current ratio was 3.07 in 2023, indicating that for every dollar of current liabilities, SPS Commerce had $3.07 of current assets available to meet those obligations.

While the current ratio decreased slightly from the previous year, it still remains at a healthy level above 2. A current ratio above 1 generally indicates that a company has more than enough current assets to cover its current liabilities, suggesting good liquidity and ability to meet short-term obligations.

Overall, SPS Commerce Inc. has maintained a relatively strong current ratio in recent years, which bodes well for its ability to manage its short-term financial obligations effectively.