SPS Commerce Inc (SPSC)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 88,883 | 77,248 | 71,182 | 55,085 | 50,158 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 854,690 | 667,475 | 537,073 | 484,259 | 420,721 |
| Return on total capital | 10.40% | 11.57% | 13.25% | 11.38% | 11.92% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $88,883K ÷ ($—K + $854,690K)
= 10.40%
SPS Commerce Inc's return on total capital has shown some variation over the past five years. The return on total capital was 11.92% as of December 31, 2020, and decreased slightly to 11.38% by December 31, 2021. However, there was an improvement in the return on total capital to 13.25% as of December 31, 2022. Subsequently, there was a slight decline to 11.57% by December 31, 2023, and a further decrease to 10.40% by December 31, 2024. This indicates that the company's ability to generate profits from its total capital investment has fluctuated in recent years, with a notable increase in 2022 followed by declines in subsequent years. Further analysis may be needed to understand the factors driving these fluctuations and to assess the company's overall financial performance.
Peer comparison
Dec 31, 2024