Perficient Inc (PRFT)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	99,000	102,300	102,700	104,082	104,418	82,447	76,843	65,634	52,091	55,983	44,764	34,800	30,181	33,552	37,154	39,073	37,125	32,810	29,336	26,657
Total stockholders’ equity	US$ in thousands	530,623	502,689	474,691	438,179	410,127	384,270	366,731	343,550	364,765	423,252	411,993	398,534	394,078	386,425	410,053	393,524	381,015	369,248	359,147	349,813
ROE		18.66%	20.35%	21.64%	23.75%	25.46%	21.46%	20.95%	19.10%	14.28%	13.23%	10.87%	8.73%	7.66%	8.68%	9.06%	9.93%	9.74%	8.89%	8.17%	7.62%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $99,000K ÷ $530,623K
= 18.66%

To analyze Perficient Inc.'s return on equity (ROE) based on the data provided, we observe a general trend of decreasing ROE over the past eight quarters. The ROE for Q4 2023 stood at 18.65%, declining from 20.33% in Q3 2023 and continuing a downward trend since Q1 2023, where ROE was at its peak of 23.75%.

Comparing the latest ROE with the values from the same quarter in the previous year, Q4 2023 reflects a significant decline from 25.45% in Q4 2022. This downward trend suggests that the company's ability to generate profit from shareholders' equity has been decreasing over time.

While a declining ROE may indicate potential concerns about the company's efficiency in utilizing equity to generate profits, it is important to consider other financial metrics and factors to get a holistic view of Perficient Inc.'s financial performance and prospects.