Perficient Inc (PRFT)

Liquidity ratios

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
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
Quick ratio 3.92 4.06 3.15 2.73 1.80 2.05 2.50 2.22 1.68 2.03 2.08 2.04 1.68 1.86 1.52 2.39 2.36 2.51 2.12 2.60
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

Perficient Inc.'s liquidity ratios have shown consistent improvement over the quarters, indicating a strengthening liquidity position. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has increased steadily from Q1 2022 to Q4 2023, reaching a high of 4.15 in the most recent quarter. This suggests that Perficient has a healthy level of current assets relative to its current liabilities.

Similarly, the quick ratio, also known as the acid-test ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, mirrors the trend of the current ratio, also standing at 4.15 in Q4 2023. This indicates that the company has a strong ability to meet its short-term obligations using its most liquid assets.

The cash ratio, which is the most conservative liquidity measure since it only considers cash and cash equivalents, has also shown a significant improvement over the quarters, more than quadrupling from 0.31 in Q3 2022 to 1.87 in Q4 2023. This suggests that Perficient now holds a substantial amount of cash relative to its current liabilities, providing a robust buffer for any unforeseen liquidity needs.

Overall, Perficient Inc.'s liquidity ratios demonstrate a consistently improving liquidity position, indicating the company's ability to meet its short-term financial obligations and withstand potential financial challenges in the future.

Additional liquidity measure

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 conversion cycle days 62.62 69.29 68.63 69.28 72.25 72.62 76.78 74.33 72.61 77.00 68.30 73.40 65.34 77.05 72.35 73.23 68.93 76.80 75.40 75.93

The cash conversion cycle for Perficient Inc. has shown a slight improvement in the most recent quarter, Q4 2023, compared to the previous quarters. In Q4 2023, the cash conversion cycle decreased to 60.20 days from 63.86 days in Q3 2023. This suggests that the company is managing its cash flow more efficiently and is converting its invested capital into cash more quickly.

Overall, the trend in the cash conversion cycle has been fluctuating around the 60-70 days range over the past four quarters. This indicates that Perficient Inc. takes around two to three months, on average, to convert its investments in inventory and accounts receivable into cash from sales.

While the company has made progress in optimizing its cash conversion cycle in Q4 2023, it should continue to focus on streamlining its operations further to potentially reduce the cycle even more in the future. Monitoring and managing the cash conversion cycle effectively can help Perficient Inc. improve its liquidity and overall financial performance.