Progress Software Corporation (PRGS)
Receivables turnover
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 694,439 | 602,013 | 531,313 | 442,150 | 413,298 |
| Receivables | US$ in thousands | 125,825 | 97,834 | 99,815 | 84,040 | 72,820 |
| Receivables turnover | 5.52 | 6.15 | 5.32 | 5.26 | 5.68 |
November 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $694,439K ÷ $125,825K
= 5.52
The receivables turnover ratio of Progress Software Corp. has fluctuated over the past five years. The ratio indicates the number of times, on average, the company collects its accounts receivable during a year. A higher receivables turnover ratio is generally preferable as it suggests that the company is efficiently collecting on its credit sales.
Progress Software Corp.'s receivables turnover ratio has shown a decreasing trend from 2019 to 2021, which could potentially indicate that the company took longer to collect its receivables during those years. However, in 2022 and 2023, the ratio increased, indicating an improvement in the company's efficiency in collecting receivables.
The variability in the receivables turnover ratio could be due to changes in the company's credit policies, customer payment behavior, or shifts in industry-wide payment practices. It's important for stakeholders to monitor this ratio over time to assess the effectiveness of the company's credit and collection policies and its overall liquidity position.
Peer comparison
Nov 30, 2023