Progress Software Corporation (PRGS)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	753,409	715,418	711,724	714,898	694,439	674,596	650,821	621,317	602,013	585,014	581,214	554,955	531,313	513,570	475,852	453,747	442,150	436,803	433,820	433,432
Property, plant and equipment	US$ in thousands	13,746	12,574	13,117	14,081	15,225	16,166	14,655	14,981	14,927	13,409	13,649	13,933	14,345	28,724	29,333	29,838	29,817	28,111	27,693	29,150
Fixed asset turnover		54.81	56.90	54.26	50.77	45.61	41.73	44.41	41.47	40.33	43.63	42.58	39.83	37.04	17.88	16.22	15.21	14.83	15.54	15.67	14.87

November 30, 2024 calculation

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

Progress Software Corporation's fixed asset turnover ratio has shown a generally increasing trend over the analyzed period, indicating the company's ability to generate sales from its investment in fixed assets. The ratio has significantly improved from 14.87 in February 2020 to 54.81 in November 2024.

This substantial increase suggests that Progress Software has become more efficient in utilizing its fixed assets to generate revenue. The company's ability to generate $54.81 in sales for every dollar invested in fixed assets as of November 2024 reflects a strong operational performance in terms of asset utilization.

A high fixed asset turnover ratio is generally considered positive as it indicates that the company is effectively managing its assets to generate revenue. The consistent growth in this ratio suggests that Progress Software has optimized its asset utilization over time, which could lead to improved profitability and return on investment for the company.