Perficient Inc (PRFT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 116.91 | 120.09 | 28.92 | 108.77 |
| Receivables turnover | 5.06 | 4.47 | 4.12 | 4.57 | 4.38 |
| Payables turnover | 41.02 | 30.88 | 24.87 | 6.29 | 21.90 |
| Working capital turnover | 3.66 | 7.16 | 7.73 | 6.22 | 4.44 |
Activity ratios provide insight into how efficiently a company is managing its assets and operations. Let's analyze the activity ratios of Perficient Inc. based on the data provided:
1. Receivables Turnover:
Perficient Inc.'s receivables turnover ratio has been gradually increasing over the past five years. This indicates that the company is collecting its accounts receivable more frequently each year. A higher receivables turnover ratio suggests that Perficient is efficient in collecting credit sales and managing its accounts receivable.
2. Payables Turnover:
The payables turnover ratio for Perficient Inc. has also been increasing over the years. This indicates that the company is taking longer to pay its suppliers. A higher payables turnover ratio could suggest either better negotiation terms with suppliers or potential cash flow challenges.
3. Working Capital Turnover:
The working capital turnover ratio has shown fluctuations over the past five years, but it generally demonstrates a decent level of efficiency. This ratio indicates how effectively Perficient is utilizing its working capital to generate revenue. A higher working capital turnover ratio suggests that the company is efficiently using its current assets to generate sales.
In summary, based on the activity ratios analysis, Perficient Inc. appears to be effectively managing its accounts receivable and working capital to drive sales. However, the increasing payables turnover ratio may warrant further investigation to understand the underlying reasons behind the trend.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 3.12 | 3.04 | 12.62 | 3.36 |
| Days of sales outstanding (DSO) | days | 72.07 | 81.59 | 88.55 | 79.95 | 83.33 |
| Number of days of payables | days | 8.90 | 11.82 | 14.68 | 57.99 | 16.67 |
The activity ratios of Perficient Inc. provide insights into how effectively the company manages its assets and liabilities to generate sales.
1. Days of Inventory on Hand (DOH): Unfortunately, there is no specific data provided for the days of inventory on hand for Perficient Inc. over the years, which makes it challenging to evaluate the efficiency of managing inventory levels.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding measure how long it takes for the company to collect payment after making a sale. A lower DSO indicates that the company is collecting cash more quickly. Over the past five years, Perficient Inc. has seen fluctuations in DSO, with the metric decreasing from 83.33 days in 2019 to 72.07 days in 2023. This trend suggests an improvement in the efficiency of collecting receivables.
3. Number of Days of Payables: The Number of Days of Payables metric indicates how long it takes the company to pay its suppliers. A higher number of days indicates that the company takes longer to settle its payables. Perficient Inc. has shown a decreasing trend in the number of days of payables, with the metric declining from 23.78 days in 2019 to 11.87 days in 2023. A lower number of days of payables suggests that the company is managing its payables more efficiently.
In summary, Perficient Inc. has shown improvements in managing its accounts receivables and payables over the past five years, which indicates enhanced efficiency in cash collection and payment processes. However, the lack of data regarding inventory management hinders a comprehensive assessment of the company's overall activity ratios.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 75.57 | 50.37 | 49.64 | 51.05 | 46.47 |
| Total asset turnover | 0.85 | 0.91 | 0.83 | 0.77 | 0.88 |
Perficient Inc.'s long-term activity ratios exhibit fluctuations over the past five years. The fixed asset turnover ratio has shown an increasing trend from 46.47 in 2019 to 75.57 in 2023, indicating that the company is generating more revenue per dollar invested in fixed assets. This suggests improved efficiency in utilizing fixed assets to generate sales.
On the other hand, the total asset turnover ratio has been more volatile, with fluctuations between 0.78 in 2020 and 0.91 in 2022. In 2023, the ratio decreased to 0.85, indicating that the company generated $0.85 in sales for every dollar of total assets. While the total asset turnover ratio has fluctuated, the overall trend is relatively stable over the past five years.
In conclusion, Perficient Inc. has managed to improve its efficiency in utilizing fixed assets to generate sales, as evidenced by the increasing trend in the fixed asset turnover ratio. However, the total asset turnover ratio's volatility suggests the company may need to focus on optimizing the utilization of total assets to enhance sales generation efficiency further over time.