SPS Commerce Inc (SPSC)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 667,475 | 537,073 | 484,259 | 420,721 | 354,876 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $667,475K)
= 0.00
The debt-to-capital ratio for SPS Commerce Inc. has been consistently 0.00 for the past five years, from 2019 to 2023. This indicates that the company has not utilized any debt to finance its operations or growth relative to its capital structure during this period. A debt-to-capital ratio of 0.00 implies that the company's capital structure is predominantly funded by equity or other non-debt sources. While a low or zero debt-to-capital ratio can be advantageous in terms of financial stability and independence, it may also suggest limited leveraging for potential growth or tax benefits associated with debt financing. Further analysis of the company's financial strategy and capacity to manage debt obligations would provide additional insights into its capital allocation decisions.
Peer comparison
Dec 31, 2023