Perficient Inc (PRFT)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	906,505	918,304	922,718	914,351	905,062	887,193	852,099	813,497	760,727	708,551	669,372	631,575	607,796	590,401	581,744	577,274	565,527	552,070	531,319	511,248
Total current assets	US$ in thousands	325,953	291,215	268,630	240,821	255,616	225,039	251,333	225,129	214,708	231,919	248,553	222,050	226,510	197,892	159,356	169,122	211,897	174,724	169,966	154,636
Total current liabilities	US$ in thousands	78,472	70,299	78,291	82,120	129,131	104,015	94,072	94,757	119,951	109,224	113,850	103,523	128,880	100,698	97,183	65,362	84,584	64,900	74,022	54,827
Working capital turnover		3.66	4.16	4.85	5.76	7.16	7.33	5.42	6.24	8.03	5.77	4.97	5.33	6.23	6.07	9.36	5.56	4.44	5.03	5.54	5.12

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $906,505K ÷ ($325,953K – $78,472K)
= 3.66

Perficient Inc.'s working capital turnover ratio has exhibited fluctuations over the past eight quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio represents better efficiency in utilizing current assets and liabilities to support operations.

In Q4 2023, the working capital turnover was 3.66, showing a decrease from the previous quarter. However, the ratio has generally been trending upwards since Q4 2022, where it was recorded at 7.16. This suggests that the company has been improving its working capital management efficiency over time.

It is important to note that a working capital turnover ratio above 1 indicates that the company is effectively using its working capital to generate revenue. Perficient Inc.'s ratios exceeding 3 in most recent quarters indicate strong efficiency in this aspect. However, the company should continue to monitor and manage its working capital effectively to sustain this positive trend in the future.