Perficient Inc (PRFT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,064,600	995,888	882,572	785,761	640,492
Total stockholders’ equity	US$ in thousands	530,623	410,127	364,765	394,078	381,015
Financial leverage ratio		2.01	2.43	2.42	1.99	1.68

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,064,600K ÷ $530,623K
= 2.01

The financial leverage ratio for Perficient Inc. has shown fluctuations over the past five years, ranging from 1.68 to 2.43. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.

The ratio decreased from 2.43 in 2022 to 2.01 in 2023, which could suggest a reduction in the company's reliance on debt financing or an increase in equity. A lower financial leverage ratio generally indicates a lower financial risk as the company has less debt relative to its equity.

Comparing the ratios over the five-year period, it is evident that Perficient Inc. has been managing its financial leverage effectively, keeping it within a reasonable range without exposing itself to excessive debt levels. This indicates a balanced capital structure that is not overly reliant on debt financing.