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Perficient (Perficient) ROE % : 17.94% (As of Dec. 2023)


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What is Perficient ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Perficient's annualized net income for the quarter that ended in Dec. 2023 was $92.7 Mil. Perficient's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $516.7 Mil. Therefore, Perficient's annualized ROE % for the quarter that ended in Dec. 2023 was 17.94%.

The historical rank and industry rank for Perficient's ROE % or its related term are showing as below:

PRFT' s ROE % Range Over the Past 10 Years
Min: 5.12   Med: 8   Max: 26.94
Current: 20.99

During the past 13 years, Perficient's highest ROE % was 26.94%. The lowest was 5.12%. And the median was 8.00%.

PRFT's ROE % is ranked better than
84.46% of 2639 companies
in the Software industry
Industry Median: 3.17 vs PRFT: 20.99

Perficient ROE % Historical Data

The historical data trend for Perficient's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Perficient ROE % Chart

Perficient Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.11 7.79 13.73 26.94 21.03

Perficient Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.65 25.27 23.10 18.50 17.94

Competitive Comparison of Perficient's ROE %

For the Information Technology Services subindustry, Perficient's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Perficient's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Perficient's ROE % distribution charts can be found below:

* The bar in red indicates where Perficient's ROE % falls into.



Perficient ROE % Calculation

Perficient's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=98.933/( (410.127+530.623)/ 2 )
=98.933/470.375
=21.03 %

Perficient's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=92.7/( (502.689+530.623)/ 2 )
=92.7/516.656
=17.94 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Perficient  (NAS:PRFT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=92.7/516.656
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(92.7 / 883.16)*(883.16 / 1046.5505)*(1046.5505 / 516.656)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.5 %*0.8439*2.0256
=ROA %*Equity Multiplier
=8.86 %*2.0256
=17.94 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=92.7/516.656
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (92.7 / 131.484) * (131.484 / 131.268) * (131.268 / 883.16) * (883.16 / 1046.5505) * (1046.5505 / 516.656)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.705 * 1.0016 * 14.86 % * 0.8439 * 2.0256
=17.94 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Perficient ROE % Related Terms

Thank you for viewing the detailed overview of Perficient's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Perficient (Perficient) Business Description

Traded in Other Exchanges
Address
555 Maryville University Drive, Suite 600, Saint Louis, MO, USA, 63141
Perficient Inc provides a variety of information technology and consulting services that focus on digital experience, business optimization, and IT solutions. The company's services include big data analytics, technology platform implementations, enterprise content management, portals and collaboration, management consulting, custom applications, business integration, business process management, and customer relationship management. It serves the healthcare, financial services, retail, and electronics industries. The vast majority of the company's revenue comes from the United States.
Executives
Thomas J. Hogan officer: Chief Operating Officer 555 MARYVILLE UNIVERSITY DRIVE, SUITE 600, SAINT LOUIS MO 63141
David S Lundeen director C/O PROFICIENT INC, 7600-B N CAPITAL OF TEXAS HWY - STE 220, AUSTIN TX 78731
Jill Ackerman Jones director 850 DIXIE HWY, LOUISVILLE KY 40210
Susan L. Adomite officer: SVP, Controller & PAO 555 MARYVILLE UNIVERSITY DRIVE, SUITE 600, ST. LOUIS MO 63141
Kevin Thomas Sheen officer: Senior Vice President 555 MARYVILLE UNIVERSITY DRIVE, SUITE 600, ST. LOUIS MO 63141
Nancy C Pechloff director 10401 CLAYTON ROAD, ST LOUIS MO 63131
Brian L Matthews director 555 MARYVILLE UNIVERSITY DRIVE, SUITE 600, SAINT LOUIS MO 63141
Ralph C Derrickson director 1120 S CAPITAL OF TEXAS HIGHWAY, BLDG 3 SUITE 220, AUSTIN TX 78746
Romil Bahl director 3170 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Gary Wimberly director ONE EXPRESS WAY, ST. LOUIS MO 63121
Jeffrey S Davis officer: Chairman and CEO ONE CITYPLACE DRIVE, SUITE 190, SAINT LOUIS MO 63141
Paul E Martin officer: Chief Financial Officer CHARTER COMMUNICATIONS, INC., 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
James R Kackley director 855 EAST MAIN AVE, ZEELAND MI 49464-0302
Kathryn J Henely officer: Chief Operating Officer 520 MARYVILLE CENTRE DR, SUITE 400, ST LOUIS MO 63141
John S Hamlin director C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682