SPS Commerce Inc (SPSC)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 65,824 | 55,134 | 44,597 | 45,586 | 33,712 |
| Total assets | US$ in thousands | 823,844 | 672,914 | 615,846 | 526,458 | 447,440 |
| ROA | 7.99% | 8.19% | 7.24% | 8.66% | 7.53% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $65,824K ÷ $823,844K
= 7.99%
Over the past five years, SPS Commerce Inc.'s return on assets (ROA) has been relatively stable, ranging from 7.24% to 8.66%. ROA measures the company's efficiency in generating profits from its assets. SPS Commerce's ROA of 7.99% in 2023 indicates that for every dollar of assets, the company generated approximately $0.08 in profit.
Although there was a slight decrease in ROA from 2022 to 2023, the company's ability to generate profits from its assets remains reasonably strong. It is important for investors and stakeholders to assess the company's management of its assets efficiency to generate profits, and SPS Commerce Inc. has maintained a consistent performance in this aspect over the past five years.
Peer comparison
Dec 31, 2023