SPS Commerce Inc (SPSC)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 99,476 101,446 94,398 86,092 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
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
Pretax margin 15.60% 16.58% 16.17% 15.36% 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%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $99,476K ÷ $637,765K
= 15.60%

The pretax margin for SPS Commerce Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The company's pretax margin ranged from a low of 13.90% in December 31, 2021, to a high of 16.85% in December 31, 2020. Overall, the pretax margin has exhibited a general upward trend from the end of 2021 to the middle of 2024, reaching a peak of 16.58% on September 30, 2024.

The pretax margin is an important indicator of the company's efficiency in generating profits before accounting for taxes. Sustained improvement in the pretax margin implies that the company is effectively managing its operating expenses and overhead costs relative to its revenue. However, the slight decline in the pretax margin observed in the latter part of 2024, dropping to 15.60% by December 31, 2024, may warrant further analysis to identify any potential reasons for the decrease.

In conclusion, while the pretax margin of SPS Commerce Inc has shown variability over the evaluated period, the company has demonstrated a generally positive trend in its ability to generate profits before tax, indicating operational efficiency and effective cost management.