SPS Commerce Inc (SPSC)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	77,248	71,182	55,085	50,158	38,406
Revenue	US$ in thousands	536,910	450,875	385,276	312,630	279,124
Operating profit margin		14.39%	15.79%	14.30%	16.04%	13.76%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $77,248K ÷ $536,910K
= 14.39%

The operating profit margin of SPS Commerce Inc. has fluctuated over the past five years, with the highest margin recorded in 2022 at 15.79% and the lowest in 2019 at 13.76%. In 2023, the operating profit margin decreased to 14.39% compared to the previous year. This indicates that the company's profitability from its core operations, before interest and taxes, slightly dipped in 2023. Overall, SPS Commerce Inc. has maintained relatively healthy operating profit margins above 14% in recent years, demonstrating a consistent ability to generate profits from its operational activities.