Progress Software Corporation (PRGS)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	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	413,298	394,364	383,331
Property, plant and equipment	US$ in thousands	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	29,765	31,573	32,971
Fixed asset turnover		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	13.89	12.49	11.63

February 29, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $714,898K ÷ $14,081K
= 50.77

Progress Software Corporation's fixed asset turnover ratio has been fluctuating over the past two years but has shown an overall increasing trend. The ratio has increased from 11.63 in November 2019 to 50.77 in February 2024, indicating that the company generated approximately $50.77 in revenue for every dollar invested in fixed assets during that period.

A high fixed asset turnover ratio suggests that Progress Software is effectively utilizing its fixed assets to generate revenue. This could indicate efficient operations, good management of assets, or a focus on asset-light business models.

It is worth noting that the fixed asset turnover ratio may vary due to changes in the company's asset base, depreciation policies, or revenue generation strategies. Analysts should further investigate the reasons behind the fluctuations in the ratio to gain a deeper understanding of Progress Software's operational efficiency and asset management strategies.