Progress Software Corporation (PRGS)

Days of sales outstanding (DSO)

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Receivables turnover		4.61	5.52	6.15	5.32	5.26
DSO	days	79.25	66.13	59.32	68.57	69.38

November 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.61
= 79.25

In analyzing Progress Software Corporation's Days Sales Outstanding (DSO) over the years, it is observed that the company's DSO has fluctuated. As of November 30, 2020, the DSO stood at 69.38 days and slightly decreased to 68.57 days by November 30, 2021. The company managed to improve its collection efficiency significantly by November 30, 2022, with the DSO dropping to 59.32 days. However, by November 30, 2023, the DSO increased to 66.13 days, indicating a slight deterioration in collection efficiency.

The most significant increase in DSO was seen on November 30, 2024, where it reached 79.25 days, a substantial jump from the previous year. This increase might signal potential challenges in collecting accounts receivable promptly or changes in the company's credit terms with customers.

Overall, Progress Software Corporation should closely monitor its DSO trend to ensure efficient management of accounts receivable and timely collection of revenues. A rising DSO can impact the company's cash flow and liquidity position, so efforts to improve collection processes and maintain a reasonable DSO level are crucial for financial health.