SPS Commerce Inc (SPSC)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	85,563	71,324	53,541	52,680	42,070
Revenue	US$ in thousands	536,910	450,875	385,276	312,630	279,124
Pretax margin		15.94%	15.82%	13.90%	16.85%	15.07%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $85,563K ÷ $536,910K
= 15.94%

The pre-tax margin of SPS Commerce Inc. has shown some fluctuation over the past five years. In 2023, the pre-tax margin was 15.94%, slightly higher than the previous year's 15.82%. However, it is worth noting that in 2021, the pre-tax margin dipped to 13.90% before rebounding in 2022 and 2023. The highest pre-tax margin was recorded in 2020 at 16.85%. Overall, the company has maintained relatively healthy pre-tax margins above 13% in the past five years, indicating consistent profitability before accounting for taxes.