SPS Commerce Inc (SPSC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 66.09% | 66.05% | 65.82% | 68.07% | 66.95% |
| Operating profit margin | 14.39% | 15.79% | 14.30% | 16.04% | 13.76% |
| Pretax margin | 15.94% | 15.82% | 13.90% | 16.85% | 15.07% |
| Net profit margin | 12.26% | 12.23% | 11.58% | 14.58% | 12.08% |
SPS Commerce Inc. has shown consistent and strong gross profit margins over the past five years, averaging around 66%. This indicates the company's ability to efficiently manage its production costs and generate profits from its core operations.
In terms of operating profit margin, there has been some fluctuation over the same period, with a peak in 2022 at 15.79% but a slight dip in 2023 to 14.39%. This metric reflects the company's efficiency in controlling its operating expenses and generating profits from its regular business activities.
The pretax margin has also varied over the years, with a noticeable decrease in 2021 compared to the previous years. However, it rebounded in 2023 to 15.94%, showing the company's ability to generate profits before accounting for taxes.
Net profit margins have also been fluctuating, ranging from 11.58% to 14.58% over the five-year period. The company's ability to maintain positive net profit margins indicates its ability to manage its overall expenses, including taxes and interest payments, to generate profits for its shareholders.
Overall, SPS Commerce Inc. has demonstrated consistent profitability over the years, with strong gross profit margins and generally stable operating, pretax, and net profit margins. This implies effective cost management and revenue generation strategies within the company.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.38% | 10.58% | 8.94% | 9.53% | 8.58% |
| Return on assets (ROA) | 7.99% | 8.19% | 7.24% | 8.66% | 7.53% |
| Return on total capital | 11.57% | 13.25% | 11.38% | 11.92% | 10.82% |
| Return on equity (ROE) | 9.86% | 10.27% | 9.21% | 10.84% | 9.50% |
SPS Commerce Inc.'s profitability ratios indicate a relatively stable performance over the past five years. The company's Operating Return on Assets (Operating ROA) has ranged between 8.94% and 10.58%, showing that it generates operating income efficiently in relation to its total assets.
Return on Assets (ROA) has also been consistent, fluctuating between 7.24% and 8.66%. This ratio reflects the overall profitability of the company's assets.
Return on Total Capital has exhibited a similar trend, varying from 11.38% to 13.25%, illustrating the return generated from all sources of capital employed.
Return on Equity (ROE) has remained relatively steady, ranging from 9.21% to 10.84%. This ratio indicates the company's ability to generate profits from the shareholders' equity investment.
Overall, SPS Commerce Inc. has maintained solid profitability levels, with consistent returns on assets and equity. The company's ability to generate value from its assets and capital sources bodes well for its financial health and efficiency in utilizing resources.