SPS Commerce Inc (SPSC)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	85,563	79,988	76,682	72,397	71,324	65,811	59,621	58,137	53,541	53,149	54,721	54,154	52,680	49,620	46,876	45,080	42,070	39,039	36,072	31,633
Revenue (ttm)	US$ in thousands	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	279,124	271,580	263,520	256,082
Pretax margin		15.94%	15.56%	15.56%	15.35%	15.82%	15.25%	14.37%	14.52%	13.90%	14.53%	15.75%	16.48%	16.85%	16.43%	15.98%	15.74%	15.07%	14.37%	13.69%	12.35%

December 31, 2023 calculation

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

The pretax margin of SPS Commerce Inc. has been relatively stable over the past eight quarters, ranging from 14.37% to 15.94%. The company's ability to control operating expenses and generate profits before tax has been consistent. In the most recent quarter, Q4 2023, the pretax margin was 15.94%, showing a slight improvement compared to the previous quarter. This indicates that SPS Commerce Inc. has been effectively managing its costs and operations to maintain a healthy level of profitability before considering tax implications. It is important for the company to continue monitoring and optimizing its pretax margin to sustain its financial performance.