SPS Commerce Inc (SPSC)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	88,883	87,024	82,052	75,920	77,247	73,376	72,467	71,402	71,182	67,541	61,372	58,933	55,085	53,269	53,702	51,284	50,158	47,365	44,344	42,563
Revenue (ttm)	US$ in thousands	637,765	611,823	583,798	560,618	536,910	513,963	492,788	471,550	450,875	431,613	415,014	400,375	385,276	365,828	347,498	328,532	312,630	302,055	293,426	286,382
Operating profit margin		13.94%	14.22%	14.05%	13.54%	14.39%	14.28%	14.71%	15.14%	15.79%	15.65%	14.79%	14.72%	14.30%	14.56%	15.45%	15.61%	16.04%	15.68%	15.11%	14.86%

December 31, 2024 calculation

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

SPS Commerce Inc's operating profit margin has shown some fluctuations over the time period covered by the data. It started at 14.86% on March 31, 2020, and rose to a peak of 16.04% by December 31, 2020. However, the operating profit margin then declined to 14.30% by the end of December 2021 before showing some recovery in the subsequent quarters.

The operating profit margin saw some variability in the following periods, ranging between 13.54% to 15.79%. Overall, the trend shows a slight decrease in the operating profit margin towards the end of the data period, with a value of 13.94% on December 31, 2024.

Analyzing the operating profit margin helps to assess the company's efficiency in generating profits from its core operations. A declining trend in the operating profit margin could indicate potential challenges in controlling costs or maintaining revenue levels relative to expenses. It is important for stakeholders to monitor this metric closely to understand the company's operational performance and profitability over time.