Perficient Inc (PRFT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	906,541	905,062	732,031	607,596	565,527
Property, plant and equipment	US$ in thousands	11,996	17,970	14,747	11,902	12,170
Fixed asset turnover		75.57	50.37	49.64	51.05	46.47

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $906,541K ÷ $11,996K
= 75.57

Fixed asset turnover measures how efficiently a company generates revenue from its fixed assets. The trend of Perficient Inc.'s fixed asset turnover over the past five years shows consistent improvement, indicating increased efficiency in utilizing its fixed assets to generate sales.

In 2023, the fixed asset turnover ratio reached 75.57, significantly higher than the ratios in the previous years, suggesting that the company was able to generate $75.57 in revenue for every $1 invested in fixed assets. This sharp increase indicates a substantial improvement in the company's ability to generate sales from its fixed assets compared to previous years.

The consistently high fixed asset turnover ratios from 2020 to 2023 demonstrate Perficient Inc.'s effective management of its fixed assets in driving revenue growth. A higher fixed asset turnover ratio typically indicates better asset utilization and efficiency, which can lead to improved profitability and financial performance.

Overall, Perficient Inc.'s improving trend in fixed asset turnover reflects the company's ability to optimize its fixed assets efficiently, making it an attractive indicator of operational effectiveness and potential financial strength.