SPS Commerce Inc (SPSC)

Current ratio

		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
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
Current ratio		2.60	2.36	3.17	3.13	3.07	2.71	3.44	3.24	2.92	3.22	3.61	3.72	3.43	3.62	3.53	3.56	3.39	4.79	4.55	4.68

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 fluctuations over the periods provided. It started at a high of 4.68 as of March 31, 2020, indicating strong short-term liquidity. However, there was a gradual decline in the ratio until December 31, 2021, where it fell to 3.39. This decline may raise concerns about the company's ability to meet its short-term obligations using current assets.

Subsequently, there was a partial recovery in the current ratio up to March 31, 2022, reaching 3.72, but it remained below the initial levels. The ratio fluctuated around 3.5 until June 30, 2024, when it dropped to 3.17. The most significant decrease occurred by September 30, 2024, with a ratio of 2.36, suggesting a potential liquidity strain.

Although there was a slight improvement by December 31, 2024, with the current ratio rising to 2.60, it still remained below the levels seen in the earlier periods. Overall, the trend in the current ratio indicates a fluctuating liquidity position for SPS Commerce Inc, warranting further investigation into the management of current assets and liabilities.