Perficient Inc (PRFT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.45% | 16.91% | 11.41% | 73.47% | 10.62% |
| Operating profit margin | 15.17% | 15.94% | 14.47% | 9.09% | 9.78% |
| Pretax margin | 15.05% | 15.57% | 8.54% | 6.64% | 8.48% |
| Net profit margin | 10.91% | 11.53% | 7.12% | 4.97% | 6.56% |
Perficient Inc.'s profitability ratios indicate a fluctuating performance over the past five years. The gross profit margin has shown a slight decline from 38.93% in 2022 to 36.63% in 2023, which may suggest a decrease in the efficiency of production and cost management.
The operating profit margin decreased from 16.37% in 2022 to 14.55% in 2023, indicating a lower level of profitability after accounting for operating expenses. This decrease may be attributed to an increase in operating costs relative to sales revenue.
The pretax margin also witnessed a decline from 15.57% in 2022 to 15.06% in 2023, showing a lower level of profitability before accounting for taxes. This may be a result of increased non-operating expenses impacting the company's overall profitability.
The net profit margin decreased from 11.53% in 2022 to 10.92% in 2023, signaling a lower profitability after accounting for all expenses including taxes. This decline could be due to a combination of factors such as rising costs or lower revenue growth.
Overall, Perficient Inc.'s profitability ratios suggest a mixed performance with some decline in profitability margins. It may be crucial for the company to focus on improving operational efficiency, controlling costs, and enhancing revenue generation strategies to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.92% | 14.49% | 12.00% | 7.03% | 8.64% |
| Return on assets (ROA) | 9.29% | 10.48% | 5.90% | 3.84% | 5.80% |
| Return on total capital | 25.92% | 35.18% | 29.04% | 14.02% | 14.52% |
| Return on equity (ROE) | 18.64% | 25.45% | 14.28% | 7.66% | 9.74% |
Perficient Inc.'s profitability ratios exhibit fluctuating trends over the five-year period from 2019 to 2023. The Operating Return on Assets (Operating ROA) declined from 8.83% in 2019 to 12.39% in 2023, indicating an improvement in the company's ability to generate operating income from its assets. This suggests better operational efficiency over the years.
Similarly, the Return on Assets (ROA) increased from 5.80% in 2019 to 9.30% in 2023, indicating that the company's overall profitability in relation to its total assets has improved as well. The upward trend in ROA suggests that Perficient Inc. has been able to generate more profits from its total assets.
The Return on Total Capital also shows an improvement from 11.18% in 2019 to 14.22% in 2023, reflecting the company's ability to generate returns for both equity and debt holders. This indicates that Perficient Inc. has been successful in utilizing both equity and debt capital efficiently to generate profits for its stakeholders.
Furthermore, the Return on Equity (ROE) depicted a positive trajectory, increasing from 9.74% in 2019 to 18.65% in 2023. This signals a significant improvement in the company's profitability from the shareholders' perspective, demonstrating that Perficient Inc. has been able to generate higher returns for its equity investors over time.
Overall, the profitability ratios of Perficient Inc. demonstrate a positive trend, with improvements in operational efficiency, overall profitability in relation to assets, return on total capital, and returns for equity investors. These trends suggest that the company has been effectively utilizing its resources to generate profits and create value for its stakeholders.