SPS Commerce Inc (SPSC)

Quick 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
Cash	US$ in thousands	219,081	178,702	209,264	182,304	162,893	186,230	212,725	203,088	207,552	195,803	184,367	169,274	149,692	208,930	174,850	184,484	179,252	149,727	147,023	143,715
Short-term investments	US$ in thousands	56,359	60,628	60,914	51,146	51,412	50,928	46,513	39,968	49,758	56,183	48,999	39,174	37,786	52,300	50,775	30,074	34,284	51,446	51,651	41,683
Receivables	US$ in thousands	46,840	45,141	44,992	43,437	39,435	36,787	40,105	38,778	34,562	35,330	37,936	35,270	33,578	30,289	34,177	30,336	31,532	29,383	30,747	28,301
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
Quick ratio		2.47	2.14	2.81	2.59	2.29	2.60	2.96	2.98	2.84	3.03	2.97	2.92	2.76	4.14	3.89	3.96	3.60	3.81	3.93	4.00

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 variability over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory.

In Q1 2023, the quick ratio was 3.24, indicating that the company had $3.24 in liquid assets available to cover each dollar of current liabilities. This was a slight decrease from the quick ratio of 3.44 in Q2 2023. However, the quick ratio remained relatively strong and above 3 throughout the four quarters of 2023, suggesting a healthy liquidity position.

Comparing year-over-year performance, the quick ratio in Q4 2023 was 2.92, which was slightly lower than the quick ratio of 3.07 in Q4 2022. Despite this decrease, the company maintained a quick ratio above 2 in both years, indicating a solid ability to meet short-term obligations without relying on inventory liquidation.

Overall, SPS Commerce Inc. has demonstrated consistent liquidity strength as reflected in its quick ratio figures over the past eight quarters. These ratios suggest that the company has ample liquid assets to cover its current liabilities, which may indicate financial stability and the ability to weather short-term financial challenges.