Progress Software Corporation (PRGS)

Payables turnover

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Cost of revenue	US$ in thousands	130,482	126,577	94,496	78,449	62,114
Payables	US$ in thousands	13,910	12,371	9,282	9,683	9,978
Payables turnover		9.38	10.23	10.18	8.10	6.23

November 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $130,482K ÷ $13,910K
= 9.38

Progress Software Corporation's payables turnover has shown a consistent upward trend over the past five years, indicating an improvement in the company's ability to manage its accounts payable efficiently. The payables turnover ratio increased from 6.23 in November 2020 to 9.38 in November 2024. This implies that the company is taking fewer days to pay its suppliers, reflecting a more effective management of trade credit terms.

The significant increase in the payables turnover ratio suggests that Progress Software Corporation may be negotiating better payment terms with its suppliers or streamlining its accounts payable processes. A higher payables turnover ratio indicates that the company is managing its working capital effectively by paying off its trade payables more rapidly, which can lead to improved cash flow management and potentially stronger supplier relationships.

Overall, the improving trend in Progress Software Corporation's payables turnover ratio is a positive signal of the company's financial health and operational efficiency in managing its payables. It suggests that the company is effectively utilizing its financial resources and maintaining good relationships with its suppliers.