SPS Commerce Inc (SPSC)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 77,054 | 65,824 | 55,134 | 44,597 | 45,586 |
| Total stockholders’ equity | US$ in thousands | 854,690 | 667,475 | 537,073 | 484,259 | 420,721 |
| ROE | 9.02% | 9.86% | 10.27% | 9.21% | 10.84% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $77,054K ÷ $854,690K
= 9.02%
The return on equity (ROE) for SPS Commerce Inc has shown some variability over the past five years. Starting at 10.84% in December 2020, the ROE decreased to 9.21% by December 2021 before slightly rebounding to 10.27% in December 2022. However, there was a subsequent decline to 9.86% by December 2023 and a further decrease to 9.02% by December 2024.
Overall, SPS Commerce Inc's ROE has fluctuated within a relatively narrow range during this period, indicating that the company's ability to generate profit from shareholders' equity has been somewhat stable. It is important for investors and stakeholders to closely monitor the trend in ROE to assess the company's profitability and efficiency in utilizing shareholder funds.
Peer comparison
Dec 31, 2024