SPS Commerce Inc (SPSC)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 241,017 | 219,081 | 162,893 | 207,552 | 149,692 |
| Short-term investments | US$ in thousands | 0 | 56,359 | 51,412 | 49,758 | 37,786 |
| Receivables | US$ in thousands | 52,035 | 46,840 | 39,435 | 34,562 | 33,578 |
| Total current liabilities | US$ in thousands | 146,684 | 130,669 | 110,642 | 102,872 | 80,132 |
| Quick ratio | 2.00 | 2.47 | 2.29 | 2.84 | 2.76 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($241,017K
+ $0K
+ $52,035K)
÷ $146,684K
= 2.00
The quick ratio of SPS Commerce Inc has shown a consistently healthy trend over the five years analyzed, ranging from 2.00 to 2.84. This indicates that the company possesses more than sufficient liquid assets to cover its current liabilities in the short term. Specifically, the quick ratio has remained above 2, depicting a strong ability to meet its short-term obligations without relying heavily on inventory liquidation. In 2021, the quick ratio peaked at 2.84, signaling a high level of liquidity. However, there was a slight decline in 2022 to 2.29, although it still remained above 2. This was followed by an increase to 2.47 in 2023, indicating a recovery in liquidity. In 2024, there was a decrease to 2.00, which might warrant closer monitoring to ensure continued ability to meet short-term obligations comfortably. Overall, the consistent quick ratio above 2 reflects a robust liquidity position for SPS Commerce Inc.
Peer comparison
Dec 31, 2024