SPS Commerce Inc (SPSC)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $667,475K
= 0.00
The debt-to-equity ratio for SPS Commerce Inc. has consistently been 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 during this period. It suggests that SPS Commerce Inc. has been relying solely on equity financing, which can be a positive sign as it signifies a lower financial risk and potential for greater financial stability. However, it's essential to consider that a low debt-to-equity ratio may also imply missed growth opportunities that could have been pursued through leveraging debt. Further analysis of the company's financial strategy and performance is necessary to fully understand the implications of this consistent ratio trend.
Peer comparison
Dec 31, 2023