SPS Commerce Inc (SPSC)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.23 | 1.25 | 1.27 | 1.25 | 1.26 |
Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. The debt-to-assets, debt-to-capital, and debt-to-equity ratios for SPS Commerce Inc. have consistently remained at 0.00 over the past five years, indicating that the company has not relied on debt significantly to finance its operations relative to its assets, capital, and equity.
On the other hand, the financial leverage ratio has shown some fluctuations over the same period, with values ranging between 1.23 and 1.27. This ratio measures the extent to which the company is using debt to finance its operations compared to its equity, with a higher ratio indicating a higher level of financial leverage.
Overall, SPS Commerce Inc. has maintained a conservative approach towards leveraging its capital and assets, as evidenced by the consistently low debt ratios. This suggests that the company has a strong financial position and is not overly burdened by debt obligations, which could enhance its ability to withstand economic downturns or pursue growth opportunities.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 35.68 | 19.24 | 9.35 |
Given that the interest coverage ratio data for SPS Commerce Inc. is not available in the table provided, it is not possible to conduct an analysis of the company's ability to meet its interest obligations using this specific financial metric. The interest coverage ratio is typically calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses for a particular period.
Without access to the actual figures for EBIT and interest expenses for the years in question, it is not possible to determine how well SPS Commerce Inc. is positioned to cover its interest payments. In general, a higher interest coverage ratio indicates a stronger ability to meet interest obligations, while a lower ratio may signal potential financial distress.
Therefore, further financial information would be necessary to assess SPS Commerce Inc.'s interest coverage and its financial health in relation to its interest obligations accurately.