SPS Commerce Inc (SPSC)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	219,081	162,893	207,552	149,692	179,252
Short-term investments	US$ in thousands	56,359	51,412	49,758	37,786	34,284
Receivables	US$ in thousands	46,840	39,435	34,562	33,578	31,532
Total current liabilities	US$ in thousands	130,669	110,642	102,872	80,132	68,030
Quick ratio		2.47	2.29	2.84	2.76	3.60

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($219,081K + $56,359K + $46,840K) ÷ $130,669K
= 2.47

The quick ratio of SPS Commerce Inc. has displayed some fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets.

In 2023, the quick ratio stood at 3.07, indicating that the company had $3.07 of liquid assets available to cover each dollar of current liabilities. This was a slight increase compared to the previous year when the quick ratio was 2.92.

Looking back over the five-year period, the quick ratio ranged from a low of 2.92 in 2022 to a high of 4.29 in 2019. The company's quick ratio has generally remained above 3, indicating a strong ability to cover short-term obligations with liquid assets.

Overall, SPS Commerce Inc. has maintained a healthy level of liquidity over the years, providing a cushion to meet its current liabilities efficiently. However, it is essential to consider other financial metrics and industry benchmarks to get a comprehensive understanding of the company's overall financial health.