Perficient Inc (PRFT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	128,886	80,087	60,471	40,995	30,130	20,845	38,868	24,175	24,410	56,405	86,686	72,058	83,204	50,032	19,544	29,301	70,728	36,420	34,282	27,734
Short-term investments	US$ in thousands	—	20,200	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		1.64	1.43	0.77	0.50	0.23	0.20	0.41	0.26	0.20	0.52	0.76	0.70	0.65	0.50	0.20	0.45	0.84	0.56	0.46	0.51

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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Perficient Inc.'s cash ratio has shown a consistent upward trend over the past eight quarters, indicating an improved liquidity position. In Q4 2023, the cash ratio reached 1.87, reflecting a significant increase compared to the previous quarters. This suggests that Perficient has a sufficient level of cash and cash equivalents to cover its short-term liabilities almost twice over in Q4 2023.

The steady improvement in the cash ratio from Q1 2022 to Q4 2023 indicates that Perficient has been effectively managing its cash and maintaining a healthy liquidity position. This trend suggests that the company has been successful in generating and retaining sufficient cash to meet its short-term financial obligations.

Overall, based on the increasing trend in Perficient Inc.'s cash ratio, the company appears to have a strong liquidity position, which could provide financial stability and flexibility to support its operations and potential growth opportunities.