SPS Commerce Inc (SPSC)

Current 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
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
Current ratio		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	4.29	4.52	4.67	4.82

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 exhibited some fluctuations over the past eight quarters. The ratio measures the company's ability to meet its short-term obligations with its current assets.

In Q4 2023, the current ratio improved to 3.07 compared to the previous quarter, indicating a stronger liquidity position. This improvement suggests that the company had a sufficient level of current assets to cover its current liabilities.

Looking further back, the current ratio has shown a general upward trend, with fluctuating levels. In Q2 and Q3 2022, the current ratio was notably high at 3.61 and 3.72, indicating robust liquidity. However, the ratio decreased in subsequent quarters before rebounding in Q4 2023.

Overall, although there have been fluctuations, SPS Commerce Inc. has generally maintained a healthy current ratio above 2. This indicates a strong liquidity position and suggests that the company is well-positioned to meet its short-term financial obligations.