Perficient Inc (PRFT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	766,491	751,984	648,499	161,207	505,447
Payables	US$ in thousands	18,688	24,351	26,074	25,613	23,081
Payables turnover		41.02	30.88	24.87	6.29	21.90

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $766,491K ÷ $18,688K
= 41.02

The payables turnover ratio for Perficient Inc. has been steadily increasing over the past five years. The ratio has improved from 15.35 in 2019 to 30.74 in 2023, indicating that the company is managing its accounts payable more efficiently. This implies that Perficient is paying off its suppliers at a faster rate, which could be due to better supplier relationships, improved cash flow management, or more effective inventory management practices. A higher payables turnover ratio may also suggest that the company is taking advantage of early payment discounts or negotiating favorable credit terms with its suppliers. Overall, the increasing trend in payables turnover reflects positively on Perficient's financial management and liquidity position.