Progress Software Corporation (PRGS)

Fixed asset turnover

Nov 30, 2024 Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020
Revenue US$ in thousands 753,409 694,439 602,013 531,313 442,150
Property, plant and equipment US$ in thousands 13,746 15,225 14,927 14,345 29,817
Fixed asset turnover 54.81 45.61 40.33 37.04 14.83

November 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $753,409K ÷ $13,746K
= 54.81

Progress Software Corporation's fixed asset turnover has shown a steady upward trend over the past five years, indicating increasingly efficient utilization of its fixed assets to generate revenue. The fixed asset turnover ratio has increased from 14.83 in November 2020 to 54.81 in November 2024.

This substantial improvement in fixed asset turnover suggests that the company has been able to generate significantly more revenue from its fixed assets over the years. By efficiently managing and optimizing the use of its fixed assets, Progress Software Corporation has been able to enhance its operational efficiency and productivity.

A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. It can be interpreted that the company is achieving higher revenue with a lower investment in fixed assets, which is a positive sign of operational effectiveness.

Overall, the increasing trend in Progress Software Corporation's fixed asset turnover over the years reflects the company's ability to maximize the output from its fixed assets, potentially leading to improved profitability and sustainable growth in the future.