Perficient Inc (PRFT)

Financial leverage ratio

		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
Total assets	US$ in thousands	1,064,600	1,028,500	1,013,690	981,855	995,888	948,737	926,943	902,821	882,572	787,631	786,195	767,510	785,761	754,294	715,454	637,658	640,492	606,704	604,790	567,936
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
Financial leverage ratio		2.01	2.05	2.14	2.24	2.43	2.47	2.53	2.63	2.42	1.86	1.91	1.93	1.99	1.95	1.74	1.62	1.68	1.64	1.68	1.62

December 31, 2023 calculation

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

Perficient Inc.'s financial leverage ratio has exhibited a downward trend over the past eight quarters, declining from 2.63 in Q1 2022 to 2.01 in Q4 2023. This indicates that the company's reliance on debt financing relative to equity has decreased over time, which can be considered a positive sign as lower financial leverage ratios generally signify a lower level of financial risk.

The decreasing trend in the financial leverage ratio suggests that Perficient Inc. has been gradually reducing its debt levels and/or increasing its equity base. By doing so, the company may be strengthening its financial position and improving its ability to weather economic downturns or other adverse events.

A financial leverage ratio of 2.01 in Q4 2023 indicates that Perficient Inc. had $2.01 in debt for every $1 of equity in its capital structure. This suggests that the company has a moderate level of financial leverage, which may be appropriate depending on its industry and growth prospects.

Overall, the declining trend in Perficient Inc.'s financial leverage ratio reflects a strategic approach towards managing its capital structure, potentially leading to enhanced financial stability and flexibility in the long term.