SPS Commerce Inc (SPSC)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	65,824	62,728	61,749	57,820	55,134	51,984	47,570	47,000	44,597	45,302	45,260	46,271	45,586	41,278	38,812	36,414	33,712	31,691	30,811	27,431
Total stockholders’ equity	US$ in thousands	667,475	626,844	600,981	565,889	537,073	507,663	497,020	491,521	484,259	470,528	454,749	440,523	420,721	394,940	373,310	355,188	354,876	345,068	338,333	330,704
ROE		9.86%	10.01%	10.27%	10.22%	10.27%	10.24%	9.57%	9.56%	9.21%	9.63%	9.95%	10.50%	10.84%	10.45%	10.40%	10.25%	9.50%	9.18%	9.11%	8.29%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $65,824K ÷ $667,475K
= 9.86%

The return on equity (ROE) of SPS Commerce Inc. has remained relatively stable over the past eight quarters, ranging from 9.56% to 10.27%. This indicates that the company is effectively utilizing its shareholders' equity to generate profits. Despite some fluctuations, the ROE has generally been above 9.5%, suggesting that SPS Commerce Inc. is efficiently managing its assets to generate earnings for its shareholders. The slight variations in ROE over the periods do not indicate any significant concerns and suggest a consistent performance in terms of shareholder value creation.