Progress Software Corporation (PRGS)

Days of sales outstanding (DSO)

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Receivables turnover		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	5.68	6.20	7.37
DSO	days	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	64.31	58.88	49.55

February 29, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.05
= 45.34

Days Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes a company to collect payment after making a sale. A lower DSO is generally favorable as it suggests the company is efficient in collecting receivables and converting sales into cash quickly.

Analyzing the DSO trend for Progress Software Corporation over the past several quarters, we observe fluctuations in the DSO figures. In the most recent quarter ending Feb 29, 2024, the DSO stands at 45.34 days, representing a decrease from the prior quarter's value of 66.13 days. This decline suggests an improvement in the company's collection efficiency and its ability to convert sales into cash at a faster rate.

Looking at historical data, we notice that the DSO has shown some variability over the past several quarters, ranging between a low of 40.65 days in May 31, 2022, to a high of 69.38 days in Nov 30, 2020. These fluctuations may result from seasonality, changes in customer payment behaviors, or specific company initiatives targeting receivables management.

Overall, a decreasing trend in DSO indicates that Progress Software Corporation has been successful in managing its receivables and improving its cash conversion cycle. Investors and stakeholders may view a declining DSO positively as it signifies enhanced liquidity and efficient operations. Monitoring DSO alongside other financial metrics can provide a comprehensive insight into the company's overall financial health and performance.