SPS Commerce Inc (SPSC)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 99,476 | 85,563 | 71,324 | 53,541 | 52,680 |
| Revenue | US$ in thousands | 637,765 | 536,910 | 450,875 | 385,276 | 312,630 |
| Pretax margin | 15.60% | 15.94% | 15.82% | 13.90% | 16.85% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $99,476K ÷ $637,765K
= 15.60%
Based on the data provided, SPS Commerce Inc's pretax margin has shown a mostly stable trend over the past five years. The pretax margin percentage decreased slightly from 16.85% in December 31, 2020, to 13.90% in December 31, 2021. However, the company was able to improve its pretax margin in the following years, reaching 15.82% in December 31, 2022, 15.94% in December 31, 2023, and 15.60% in December 31, 2024.
The pretax margin reflects the company's efficiency in generating profits before considering taxes, indicating how well it controls costs and manages its operations. SPS Commerce Inc's ability to maintain a relatively stable pretax margin over the years suggests a level of consistency in its operating performance. However, stakeholders may want to monitor the trend closely to ensure sustained profitability and operational effectiveness in the future.
Peer comparison
Dec 31, 2024