Progress Software Corporation (PRGS)

Days of sales outstanding (DSO)

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020
Receivables turnover		4.61	8.16	8.64	8.05	5.52	6.76	7.46	6.66	6.15	7.11	8.98	6.41	5.32	6.67	7.43	5.85	5.26	7.22	7.96	6.97
DSO	days	79.25	44.73	42.23	45.34	66.13	53.96	48.89	54.84	59.32	51.32	40.65	56.96	68.57	54.75	49.13	62.40	69.38	50.52	45.88	52.37

November 30, 2024 calculation

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

The days of sales outstanding (DSO) for Progress Software Corporation show fluctuations over the periods provided in the data. DSO indicates the average number of days it takes for a company to collect payment after making a sale.

Looking at the trend over time, we can observe that DSO decreased from 52.37 days on February 29, 2020, to a low of 40.65 days on May 31, 2022. This decline suggests that the company improved its efficiency in collecting receivables during this period.

However, the DSO increased to 79.25 days on November 30, 2024, indicating a significant delay in collecting payments compared to the earlier periods. Such an increase in DSO could be a red flag, suggesting potential issues with the company's credit policy, customer payment behavior, or economic conditions affecting collections.

Overall, monitoring DSO is crucial for Progress Software Corporation to ensure efficient cash flow management and timely collections. Regular analysis and trend monitoring of DSO can provide insights into the company's financial health and effectiveness in managing its accounts receivable.