Progress Software Corporation (PRGS)

Payables turnover

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cost of revenue	US$ in thousands	126,577	94,496	78,449	62,114	75,241
Payables	US$ in thousands	12,371	9,282	9,683	9,978	10,603
Payables turnover		10.23	10.18	8.10	6.23	7.10

November 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $126,577K ÷ $12,371K
= 10.23

The payables turnover ratio for Progress Software Corp. has shown a consistent improvement over the past five years, indicating more efficient management of its accounts payable. The ratio increased from 4.66 in 2019 to 7.79 in 2023, signifying that the company's ability to pay off its suppliers has improved significantly. This trend suggests that Progress Software Corp. has been able to settle its payables more frequently and efficiently in recent years. The increase in payables turnover reflects positively on the company's liquidity and working capital management. It also indicates that the company has been able to negotiate more favorable payment terms with its suppliers or has effectively managed its inventory levels, leading to a more efficient use of its resources. Overall, the improvement in the payables turnover ratio demonstrates favorable operational and financial management within the company.