Perficient Inc (PRFT)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	98,933	104,392	52,091	30,181	37,125
Total stockholders’ equity	US$ in thousands	530,623	410,127	364,765	394,078	381,015
ROE		18.64%	25.45%	14.28%	7.66%	9.74%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $98,933K ÷ $530,623K
= 18.64%

Perficient Inc.'s return on equity (ROE) has shown fluctuations over the past five years.

In 2023, the ROE decreased to 18.65% from 25.45% in 2022, indicating a decline in the company's ability to generate profit from shareholders' equity. Despite the decrease, the ROE in 2023 remains relatively high compared to the earlier years.

The upward trend from 2019 to 2022 suggests a positive performance improvement, with the ROE more than doubling during this period. This indicates that Perficient Inc. was becoming more efficient in utilizing equity to generate profits.

However, the decrease in ROE in 2023 may raise concerns about the company's profitability and efficiency in utilizing shareholder funds. It is important for investors and stakeholders to monitor whether this decrease is a temporary fluctuation or a long-term trend that requires attention from management.