SPS Commerce Inc (SPSC)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	88,883	77,248	71,182	55,085	50,158
Revenue	US$ in thousands	637,765	536,910	450,875	385,276	312,630
Operating profit margin		13.94%	14.39%	15.79%	14.30%	16.04%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $88,883K ÷ $637,765K
= 13.94%

Based on the data provided, the operating profit margin of SPS Commerce Inc has displayed some fluctuations over the past five years:

1. In December 2020, the operating profit margin was 16.04%, indicating that the company was able to generate $0.16 of operating profit for every dollar of sales.

2. However, by December 2021, the operating profit margin decreased to 14.30%, showing a slight decline in profitability compared to the previous year.

3. In December 2022, there was a slight improvement in the operating profit margin to 15.79%, suggesting that the company may have implemented measures to enhance operational efficiency.

4. The operating profit margin dropped again to 14.39% by December 2023, indicating a decrease in the company's ability to convert sales into operating profit.

5. As of December 2024, the operating profit margin further decreased to 13.94%, highlighting a continued decline in profitability.

Overall, fluctuations in the operating profit margin suggest that SPS Commerce Inc may be facing challenges in maintaining consistent profitability, and it would be important for the company to analyze the factors influencing these changes and implement strategies to improve operational efficiency and profitability in the future.