SPS Commerce Inc (SPSC)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	823,844	787,408	735,538	696,927	672,914	637,090	622,776	613,308	615,846	591,283	572,278	549,837	526,458	487,686	461,663	439,819	447,440	426,597	418,607	407,197
Total stockholders’ equity	US$ in thousands	667,475	626,844	600,981	565,889	537,073	507,663	497,020	491,521	484,259	470,528	454,749	440,523	420,721	394,940	373,310	355,188	354,876	345,068	338,333	330,704
Financial leverage ratio		1.23	1.26	1.22	1.23	1.25	1.25	1.25	1.25	1.27	1.26	1.26	1.25	1.25	1.23	1.24	1.24	1.26	1.24	1.24	1.23

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $823,844K ÷ $667,475K
= 1.23

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure.

Based on the data provided for SPS Commerce Inc., the financial leverage ratio has shown consistent levels ranging between 1.22 to 1.26 over the past eight quarters. This indicates that SPS Commerce Inc. maintains a moderate level of financial leverage, with a relatively stable debt-to-equity mix in its capital structure.

The consistency in the financial leverage ratio suggests that SPS Commerce Inc. has been maintaining a balanced approach towards using debt as a source of funding. It is essential for investors and creditors to monitor this ratio over time to assess the company's ability to manage its debt obligations and financial risk effectively.