Perficient Inc (PRFT)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 3.12 3.04 12.62 3.36
Days of sales outstanding (DSO) days 72.07 81.59 88.55 79.95 83.33
Number of days of payables days 8.90 11.82 14.68 57.99 16.67
Cash conversion cycle days 63.17 72.89 76.92 34.58 70.02

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 72.07 – 8.90
= 63.17

The cash conversion cycle of Perficient Inc. has shown variability over the past five years. In 2023, the company's cash conversion cycle decreased to 60.20 days from 65.50 days in 2022, indicating an improvement in the efficiency of managing its working capital. However, compared to 2020, the cycle has lengthened, suggesting potential challenges in converting inventory and receivables into cash.

The company's cash conversion cycle in 2023 was slightly higher than in 2019, indicating that Perficient Inc. may be taking longer to convert its resources into cash compared to the earlier period. Overall, the trend in the cash conversion cycle suggests fluctuations in the company's liquidity and operational efficiency over the years, highlighting the importance of closely monitoring working capital management practices.


Peer comparison

Dec 31, 2023