SPS Commerce Inc (SPSC)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.21 | 1.23 | 1.25 | 1.27 | 1.25 |
Based on the provided data for SPS Commerce Inc, the solvency ratios indicate a strong financial position with consistently low debt levels over the years.
- Debt-to-assets ratio: The company has maintained a debt-to-assets ratio of 0.00 across all years, indicating that there is no significant debt relative to its total assets. This suggests that SPS Commerce is not reliant on debt financing to support its operations and growth.
- Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also remained at 0.00 for all years, signifying that the company's capital structure is not significantly comprised of debt. SPS Commerce appears to have a well-balanced mix of equity and debt within its capitalization.
- Debt-to-equity ratio: The debt-to-equity ratio is also consistently at 0.00 for all years, indicating that the company's equity is more than sufficient to cover any outstanding debt obligations. This suggests a strong financial position and minimal financial risk associated with debt.
- Financial leverage ratio: The financial leverage ratio has shown a declining trend from 1.25 in 2020 to 1.21 in 2024. This decrease indicates that the company is reducing its reliance on debt to finance its operations, which can lower financial risk and improve financial flexibility.
Overall, the solvency ratios suggest that SPS Commerce Inc is in a stable financial position with minimal debt obligations and a healthy balance between debt and equity in its capital structure. The declining trend in the financial leverage ratio also indicates prudent financial management decisions by the company over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 501.28 | 35.68 | 19.24 |
Based on the provided data, the interest coverage ratio of SPS Commerce Inc has shown a consistently strong and improving trend over the years.
As of December 31, 2020, the company's interest coverage ratio was 19.24, indicating that the company generated 19.24 times more operating income than its interest expense. This level already suggested healthy coverage of interest payments.
Moving forward to December 31, 2021, the interest coverage ratio increased to 35.68, reflecting an improvement in the company's ability to cover its interest expenses from its operating income.
By December 31, 2022, the interest coverage ratio soared significantly to 501.28, signaling a remarkable enhancement in the company's financial position. This extraordinarily high ratio implies a robust capacity to meet interest obligations comfortably.
However, it is worth noting that the data is missing for December 31, 2023, and December 31, 2024. Nevertheless, based on the trajectory of the interest coverage ratios in the prior years, it can be inferred that SPS Commerce Inc likely maintained a strong and sustainable interest coverage position during these periods as well.
Overall, the trend of the interest coverage ratio for SPS Commerce Inc showcases a positive financial performance and indicates the company's ability to meet its interest payment obligations comfortably, ensuring financial stability and attractiveness to investors and creditors.