Perficient Inc (PRFT)

Receivables 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
Receivables	US$ in thousands	179,000	202,300	177,602	133,085	129,118
Receivables turnover		5.06	4.47	4.12	4.57	4.38

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $906,541K ÷ $179,000K
= 5.06

Perficient Inc.'s receivables turnover ratio has shown a generally positive trend over the past five years. The ratio has increased from 4.38 in 2019 to 5.06 in 2023, indicating that the company is collecting its accounts receivable more efficiently. This improvement suggests that Perficient Inc. has been able to reduce the time it takes to collect payment from its customers.

A higher receivables turnover ratio is typically seen as a positive indicator, as it signifies that the company is effectively managing its accounts receivable and converting them into cash quickly. It implies that Perficient Inc. has strong credit policies in place and is able to collect its outstanding receivables in a timely manner.

Overall, the increasing trend in Perficient Inc.'s receivables turnover ratio reflects positively on the company's liquidity and efficiency in managing its accounts receivable. It is indicative of the company's ability to convert its credit sales into cash, which is essential for maintaining a healthy cash flow and financial stability.