Progress Software Corporation (PRGS)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — 18.74 19.84 31.77 26.39 22.09 — — — — — — — — — —
Receivables turnover 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 5.68 6.20 7.37
Payables turnover 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 7.10 10.35 7.03
Working capital turnover — — — — — 5.57 6.90 8.11 9.42 35.71 2.16 2.32 — — 4.72 6.55 9.85 9.44 18.81 3,582.53

Progress Software Corporation's activity ratios can provide insights into how effectively the company is managing its assets and liabilities to generate revenue.

1. Inventory Turnover: The company has shown a fluctuating trend in inventory turnover, with the ratio peaking at 31.77 in August 2022. This indicates that Progress Software has been efficient in managing its inventory levels and converting them into sales.

2. Receivables Turnover: Progress Software's receivables turnover has varied over time, ranging from 5.26 to 8.98. A higher turnover ratio suggests that the company is collecting receivables more quickly, which can improve liquidity and reduce the risk of bad debt.

3. Payables Turnover: The payables turnover ratio has also fluctuated, reaching a high of 14.98 in May 2023. A higher payables turnover may indicate that the company is effectively managing its supplier payments and utilizing trade credit efficiently.

4. Working Capital Turnover: Progress Software's working capital turnover has shown significant fluctuations, with a notable spike to 3,582.53 in May 2019. This ratio reflects how efficiently the company is utilizing its working capital to support revenue generation. The fluctuating trend suggests varying levels of working capital efficiency over time.

Overall, analyzing these activity ratios can provide valuable insights into Progress Software Corporation's operational efficiency and effectiveness in managing its assets and liabilities to drive business performance.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — 19.48 18.40 11.49 13.83 16.52 — — — — — — — — — —
Days of sales outstanding (DSO) days 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 64.31 58.88 49.55
Number of days of payables days 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 51.44 35.28 51.92

The activity ratios of Progress Software Corporation provide insight into how efficiently the company manages its inventory, collects on its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): The company has shown fluctuations in its inventory management efficiency over the periods analyzed. The most recent data points indicate that the company did not report specific figures for DOH. Prior periods show a decreasing trend in DOH from 19.48 days to 11.49 days, indicating an improvement in managing inventory levels more effectively.

2. Days of Sales Outstanding (DSO): Progress Software Corporation demonstrates variability in its collection of receivables. DSO has fluctuated across the periods analyzed, with the latest data at 45.34 days. This suggests that the company takes approximately 45.34 days to collect payments from customers on average, with better performance noted in periods with lower DSO.

3. Number of Days of Payables: The company's payment period to suppliers has also varied over the analyzed periods. The number of days of payables ranges from 24.36 days to 59.00 days. A longer payment period (higher days of payables) may indicate better cash flow management, but it is essential to maintain relationships with vendors.

Overall, monitoring and managing these activity ratios are crucial for Progress Software Corporation to maintain a healthy balance between managing inventory efficiently, collecting receivables promptly, and paying payables in a timely manner to optimize cash flow and working capital management.

Long-term

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
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
Total asset turnover 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 0.47 0.46 0.46

Progress Software Corporation's long-term activity ratios show how efficiently the company is utilizing its assets to generate revenue.

1. Fixed asset turnover has been consistently increasing over the periods, indicating that the company is generating more sales relative to its fixed assets. The significant increase suggests improved efficiency in utilizing fixed assets to generate revenue.

2. Total asset turnover has fluctuated over the periods but generally shows a slight upward trend. This ratio indicates the company's ability to generate revenue relative to its total assets. The company's ability to generate revenue from its total assets has shown improvement over time.

Both ratios demonstrate that Progress Software Corporation has been effectively using its assets to generate sales, with a notable improvement in fixed asset turnover efficiency. This trend may be indicative of effective asset management strategies and operational efficiency within the company.