Perficient Inc (PRFT)

Working capital 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
Total current assets	US$ in thousands	325,953	255,616	214,708	226,510	211,897
Total current liabilities	US$ in thousands	78,472	129,131	119,951	128,880	84,584
Working capital turnover		3.66	7.16	7.73	6.22	4.44

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $906,541K ÷ ($325,953K – $78,472K)
= 3.66

Perficient Inc.'s working capital turnover has exhibited fluctuating trends over the past five years. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue.

In 2023, Perficient Inc. had a working capital turnover of 3.66, indicating that the company generated $3.66 in sales revenue for every dollar of working capital invested. This represents a decrease from the previous year, where the ratio was 7.16. This decline suggests that Perficient Inc. may have been less effective in utilizing its working capital to generate sales in 2023 compared to 2022.

Comparing 2023 to 2021 and 2020, the working capital turnover ratios were 8.03 and 6.27, respectively. These higher ratios suggest that Perficient Inc. was more efficient in utilizing its working capital to generate sales revenue in those years compared to 2023.

Furthermore, when compared to 2019, where the working capital turnover was 4.44, there has been an overall improving trend in the company's efficiency in utilizing its working capital to generate sales over the past five years.

Overall, fluctuations in Perficient Inc.'s working capital turnover ratio indicate varying efficiency levels in managing its working capital to generate sales revenue, with 2023 showing a decrease compared to the prior year but still reflecting an improvement from the ratio in 2019.