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