SPS Commerce (SPS Commerce) Interest Coverage : N/A (As of Mar. 2024)

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What is SPS Commerce Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. SPS Commerce's Operating Income for the three months ended in Mar. 2024 was $15.4 Mil. SPS Commerce's Interest Expense for the three months ended in Mar. 2024 was $0.0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. SPS Commerce Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for SPS Commerce's Interest Coverage or its related term are showing as below:

SPSC's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 29.17
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SPS Commerce Interest Coverage Historical Data

The historical data trend for SPS Commerce's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

SPS Commerce Interest Coverage Chart

SPS Commerce Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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N/A

SPS Commerce Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															N/A	N/A	N/A	N/A	N/A

Competitive Comparison of SPS Commerce's Interest Coverage

For the Software - Infrastructure subindustry, SPS Commerce's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

SPS Commerce's Interest Coverage Distribution in the Software Industry

For the Software industry and Technology sector, SPS Commerce's Interest Coverage distribution charts can be found below:

* The bar in red indicates where SPS Commerce's Interest Coverage falls into.

SPS Commerce Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SPS Commerce's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, SPS Commerce's Interest Expense was $0.0 Mil. Its Operating Income was $77.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $9.6 Mil.

GuruFocus does not calculate SPS Commerce's interest coverage with the available data.

SPS Commerce's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, SPS Commerce's Interest Expense was $0.0 Mil. Its Operating Income was $15.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $8.4 Mil.

GuruFocus does not calculate SPS Commerce's interest coverage with the available data.

The higher the ratio, the stronger the company's Financial Strength is.

SPS Commerce (NAS:SPSC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

SPS Commerce Interest Coverage Related Terms

Thank you for viewing the detailed overview of SPS Commerce's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

SPS Commerce (SPS Commerce) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » SPS Commerce Inc (NAS:SPSC) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

S86:Germany

Address

333 South Seventh Street, Suite 1000, Minneapolis, MN, USA, 55402

Website

https://www.spscommerce.com

SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.

Executives

Marty M Reaume	director	TWILIO INC, 375 BEALE STREET SUITE 300, SAN FRANCISCO CA 94105
Archie C. Black	director, officer: President & CEO	333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
Philip Soran	director	12982 VALLEY VIEW RD, EDEN PRAIRIE MN 55344
Kimberly K. Nelson	officer: EVP & CFO	2800 MOUNT RIDGE ROAD, ROSEVILLE MN 55113
Sven Wehrwein	director
Chadwick Collins	director, officer: Chief Executive Officer	333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
James J. Frome	officer: EVP & Chief Strategy Officer	333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
James Burr Ramsey	director	C/O NETSUITE INC, 2955 CAMPUS DRIVE SUITE 100, SAN MATEO CA 94403
Anne Sempowski Ward	director	C/O VANDA PHARMACEUTICALS INC., 2200 PENNSYLVANIA AVENUE, SUITE 300E, WASHINGTON DC 20037
Martin J Leestma	director	333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402
Michael A Smerklo	director	C/O SERVICESOURCE INTERNATIONAL, INC., 634 SECOND STREET, SAN FRANCISCO CA 94107
Michael J Mcconnell	director	P.O. BOX 6280, NEWPORT BEACH CA 92658
Melvin L Keating	director	18 DRIFTWOOD DRIVE, LIVINGSTON NJ 07039
Tami Reller	director	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Spencer George H. Iii	director, 10 percent owner	C/O SEYEN CAPITAL, 150 NORTH WACKER DR., SUITE 660, CHICAGO IL 60606