Perficient Inc (PRFT)

Current 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
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
Current ratio		4.15	4.14	3.43	2.93	1.98	2.16	2.67	2.38	1.79	2.12	2.18	2.14	1.76	1.97	1.64	2.59	2.51	2.69	2.30	2.82

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $325,953K ÷ $78,472K
= 4.15

Perficient Inc.'s current ratio has shown an improving trend over the past eight quarters, indicating an increasing ability to meet its short-term obligations with its current assets. The current ratio stood at 4.15 in Q4 2023, the highest level in the provided data, demonstrating a strong liquidity position. This was a notable increase from the ratio of 2.38 in Q1 2022, reflecting significant growth in the company's liquidity over this period.

The company's current ratio was consistently above 2.0, a commonly accepted benchmark for a healthy liquidity position, in the last four quarters. This suggests that Perficient has more than enough current assets to cover its current liabilities, providing a buffer for potential financial challenges.

The significant increase in the current ratio from Q1 2023 (2.93) to Q4 2023 (4.15) indicates a substantial improvement in the company's liquidity position within a year. This could imply better management of working capital, increased efficient use of current assets, or a reduction in short-term liabilities.

Overall, Perficient Inc.'s current ratio has displayed a positive trend, indicating strength in liquidity management and financial health in the short term. It is important for the company to maintain this trend to ensure its ability to meet its financial obligations and fund its operations effectively.