SPS Commerce Inc (SPSC)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	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	38,406	35,851	33,175	29,810
Total assets	US$ in thousands	823,844	787,408	735,538	696,927	672,914	637,090	622,776	613,308	615,846	591,283	572,278	549,837	526,458	487,686	461,663	439,819	447,440	426,597	418,607	407,197
Operating ROA		9.38%	9.32%	9.85%	10.25%	10.58%	10.60%	9.85%	9.61%	8.94%	9.01%	9.38%	9.33%	9.53%	9.71%	9.61%	9.68%	8.58%	8.40%	7.93%	7.32%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $77,247K ÷ $823,844K
= 9.38%

Based on the operating return on assets (operating ROA) data provided for SPS Commerce Inc. over the eight quarters from Q1 2022 to Q4 2023, there appears to be a fluctuation in the company's performance.

The operating ROA ranged from a high of 10.60% in Q3 2022 to a low of 9.32% in Q3 2023, indicating some variability in the company's ability to generate operating income from its total assets over the period.

The trend shows a general decline in operating ROA from Q1 2022 to Q3 2023, with a slight recovery in Q4 2023. This decline may suggest a decrease in operational efficiency or profitability relative to the total assets employed by the company during these quarters.

It is essential for SPS Commerce Inc. to closely monitor and analyze the factors contributing to the fluctuation in its operating ROA to identify areas for improvement and optimize its asset utilization for sustainable profitability and growth in the future.

Overall, while the company's operating ROA has shown some variability, a detailed analysis of the underlying drivers of these changes will be crucial in guiding strategic decision-making and performance enhancement moving forward.