Perficient Inc (PRFT)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	530,623	410,127	364,765	394,078	381,015
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $530,623K
= 0.00

Perficient Inc.'s debt-to-equity ratio has exhibited some fluctuation over the past five years, ranging from 0.33 in 2019 to 0.96 in 2022. A higher debt-to-equity ratio indicates a more significant reliance on debt financing compared to equity, while a lower ratio suggests a stronger equity position.

In 2023, the debt-to-equity ratio decreased to 0.75 from the previous year's 0.96, indicating a reduction in the company's debt relative to its equity. This implies that Perficient Inc. may have lowered its debt levels, possibly through debt repayments or increased equity investments.

Comparing the most recent ratio to that of 2019, where the ratio was 0.33, we observe a considerable increase in the utilization of debt financing by Perficient Inc. over the past five years. This may have been driven by strategic decisions to leverage debt for expansion, acquisitions, or other growth initiatives.

Overall, a debt-to-equity ratio of 0.75 in 2023 suggests that Perficient Inc. maintains a moderate level of debt in relation to its equity, which could indicate a balanced capital structure that aligns with the company's risk tolerance and growth objectives. Further analysis of the company's financial position, profitability, and cash flow would provide additional insights into the sustainability and efficiency of Perficient Inc.'s capital structure.