Perficient Inc (PRFT)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	137,520	144,275	105,932	55,254	55,332
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	530,623	410,127	364,765	394,078	381,015
Return on total capital		25.92%	35.18%	29.04%	14.02%	14.52%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $137,520K ÷ ($—K + $530,623K)
= 25.92%

Over the past five years, Perficient Inc. has exhibited varying levels of return on total capital, a key financial metric that indicates the efficiency of the company in generating returns from both equity and debt capital. The return on total capital has ranged from 11.18% in 2019 to 18.42% in 2022.

The fluctuation in the return on total capital can be attributed to changes in the company's profitability and capital structure. A higher return on total capital signifies that Perficient Inc. is effectively utilizing its total capital to generate profits for its stakeholders. Conversely, a lower return on total capital may indicate inefficiencies in capital allocation or declining profitability.

Overall, the company has generally maintained a healthy return on total capital, with the latest figure standing at 14.22% in 2023. Investors and stakeholders may find this metric useful in assessing Perficient Inc.'s ability to generate value from its invested capital over time.