Perficient Inc (PRFT)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	128,886	30,130	24,410	83,204	70,728
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	78,472	129,131	119,951	128,880	84,584
Cash ratio		1.64	0.23	0.20	0.65	0.84

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($128,886K + $—K) ÷ $78,472K
= 1.64

The cash ratio for Perficient Inc. has shown some fluctuation over the past five years, ranging from 0.31 in 2021 to 1.87 in 2023. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a stronger ability to meet its short-term obligations using its cash reserves.

In 2023, the cash ratio of 1.87 signifies that Perficient Inc. had a significantly improved liquidity position compared to the previous years. This indicates that the company had a higher proportion of cash and cash equivalents relative to its current liabilities, suggesting a strong ability to meet its short-term financial obligations. This could be a positive signal for investors and creditors, as it demonstrates the company's ability to weather potential financial difficulties.

On the other hand, the lower cash ratios in 2021 and 2022 (0.31 and 0.41, respectively) may suggest a relatively weaker liquidity position during those years. It is important for the company to closely monitor its cash position and manage its short-term obligations effectively to avoid potential liquidity challenges in the future.

Overall, the increasing trend in Perficient Inc.'s cash ratio from 2020 to 2023 indicates an improvement in its liquidity position and suggests a better ability to manage short-term financial commitments using its cash resources. It would be beneficial for stakeholders to continue monitoring this ratio to assess the company's liquidity health over time.