Perficient Inc (PRFT)

Interest coverage

		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
Interest expense	US$ in thousands	363	3,154	14,052	10,128	7,418
Interest coverage		378.84	45.74	7.54	5.46	7.46

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $137,520K ÷ $363K
= 378.84

Perficient Inc.'s interest coverage has shown a significant improvement over the past five years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. In 2023, the interest coverage ratio was exceptionally high at 363.38, indicating that Perficient Inc. generated 363 times the amount of operating income needed to cover its interest expenses.

This substantial increase from 2022, where the ratio was 46.99, suggests that the company's operating income significantly outpaced its interest expense in the most recent year. The upward trend in interest coverage from 2020 to 2023 reflects a strengthening financial position, as the company has consistently improved its ability to meet its interest obligations from its operating profits.

Overall, Perficient Inc.'s interest coverage has demonstrated strong financial performance and stability, as the company's operating income continues to provide ample coverage for its interest payments, ensuring financial health and ability to meet debt obligations.