SPS Commerce Inc (SPSC)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	77,248	71,182	55,085	50,158	38,406
Interest expense	US$ in thousands	—	-142	1,544	2,607	4,109
Interest coverage		—	—	35.68	19.24	9.35

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $77,248K ÷ $—K
= —

To calculate the interest coverage ratio, we need the income before interest and taxes (EBIT) and the interest expense. Unfortunately, the data provided does not include the specific figures for interest expense or EBIT for SPS Commerce Inc. for the years specified. Therefore, it is not possible to compute the interest coverage ratio for the company based on the information available.

The interest coverage ratio is a crucial financial metric as it indicates a company's ability to cover its interest payments with its earnings. A higher interest coverage ratio suggests a stronger ability to meet interest obligations. Conversely, a lower ratio may indicate a higher risk of default on debt obligations due to insufficient earnings to cover interest expenses.

Without the necessary financial data, a comprehensive analysis of SPS Commerce Inc.'s interest coverage over the specified years cannot be provided. For a more thorough evaluation of the company's financial health and debt-servicing capabilities, access to the detailed financial statements is required.