Progress Software Corporation (PRGS)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — — — — 18.74 19.84 31.77 26.39 22.09 — — — — — — —
Receivables turnover 4.61 8.16 8.64 8.05 5.52 6.76 7.46 6.66 6.15 7.11 8.98 6.41 5.32 6.67 7.43 5.85 5.26 7.22 7.96 6.97
Payables turnover 9.38 11.84 15.32 13.42 10.23 13.34 14.98 9.32 10.18 11.93 8.91 10.41 8.10 11.34 6.19 6.45 6.23 10.15 8.02 7.25
Working capital turnover — 9.71 19.90 — — — — — 5.57 6.90 8.11 9.42 35.71 2.16 2.32 — — 4.72 6.55 9.85

Progress Software Corporation's inventory turnover ratio has shown fluctuations over the years, with a significant increase in May 2022, but a decrease in the subsequent periods, indicating varying efficiency in managing inventory.

The receivables turnover ratio has generally been stable, showing an improvement in the company's ability to collect on credit sales by November 2024 compared to earlier periods.

On the other hand, the payables turnover ratio has been fluctuating, indicating changes in the company's payment practices towards its suppliers over time.

The working capital turnover ratio shows a mixed trend with periods of significant activity, such as November 2021 and May 2024, suggesting variations in how efficiently the company is utilizing its working capital in generating sales.

Overall, a deeper analysis of the company's operational efficiency and working capital management practices should be conducted to understand the underlying factors driving these activity ratios for Progress Software Corporation.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — 19.48 18.40 11.49 13.83 16.52 — — — — — — —
Days of sales outstanding (DSO) days 79.25 44.73 42.23 45.34 66.13 53.96 48.89 54.84 59.32 51.32 40.65 56.96 68.57 54.75 49.13 62.40 69.38 50.52 45.88 52.37
Number of days of payables days 38.91 30.84 23.83 27.19 35.67 27.36 24.36 39.17 35.85 30.60 40.99 35.08 45.05 32.19 59.00 56.55 58.63 35.98 45.49 50.32

Based on the provided data, we can analyze the activity ratios of Progress Software Corporation as follows:

1. Days of Inventory on Hand (DOH):
- Progress Software Corporation has seen fluctuations in its inventory turnover cycle. The days of inventory on hand decreased from 16.52 days on November 30, 2021, to 11.49 days on May 31, 2022. However, there was an increase to 19.48 days on November 30, 2022. This indicates that the company took longer to sell its inventory during this period.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding for Progress Software Corporation have also shown variability. The DSO decreased from 52.37 days on February 29, 2020, to 40.65 days on May 31, 2022, indicating that the company collected its receivables more efficiently. However, there was a significant increase to 79.25 days on November 30, 2024, suggesting potential issues with collecting sales revenue.

3. Number of Days of Payables:
- The number of days of payables for Progress Software Corporation has fluctuated over the years. The days of payables decreased from 50.32 days on February 29, 2020, to 30.60 days on August 31, 2022. This indicates that the company took fewer days to pay its suppliers. However, there was a slight increase to 38.91 days on November 30, 2024.

Overall, these activity ratios provide insights into how efficiently Progress Software Corporation manages its inventory, collects sales revenue, and pays its suppliers. Management should monitor these ratios to ensure optimal operational efficiency and cash flow management.

Long-term

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
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
Total asset turnover 0.30 0.44 0.45 0.46 0.43 0.42 0.41 0.38 0.43 0.43 0.43 0.41 0.39 0.40 0.38 0.44 0.42 0.48 0.48 0.49

Progress Software Corporation's fixed asset turnover has shown a positive trend over the past few years, increasing steadily from 14.87 in February 2020 to 54.81 in November 2024. This indicates that the company has become more efficient in generating revenue from its fixed assets.

In terms of total asset turnover, the company's performance has been a bit more volatile, fluctuating between 0.38 and 0.46 during the same period. However, there seems to be an overall improving trend in total asset turnover since February 2020, suggesting that Progress Software Corporation has been utilizing its total assets more effectively to generate sales.

Overall, the increasing trend in fixed asset turnover and the general improvement in total asset turnover reflect positively on the company's operational efficiency and asset utilization, indicating potential for sustained growth in the long term.