Progress Software Corporation (PRGS)

Receivables turnover

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Revenue	US$ in thousands	753,409	694,439	602,013	531,313	442,150
Receivables	US$ in thousands	163,575	125,825	97,834	99,815	84,040
Receivables turnover		4.61	5.52	6.15	5.32	5.26

November 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $753,409K ÷ $163,575K
= 4.61

The receivables turnover ratio for Progress Software Corporation has shown some fluctuations over the past five years.

In November 2020, the company had a receivables turnover ratio of 5.26, indicating that it collected its accounts receivable approximately 5.26 times during that year.

By November 2021, the ratio slightly improved to 5.32, suggesting a slight increase in the efficiency of collecting receivables compared to the previous year.

The most significant improvement was seen in November 2022, where the receivables turnover ratio surged to 6.15. This indicates that the company was able to collect its accounts receivable over 6 times during that year, reflecting a more efficient collection process.

However, there was a slight decline in November 2023, with the ratio dropping to 5.52. Despite this minor decrease, the company maintained a relatively solid turnover rate for its receivables.

The latest data for November 2024 shows a notable decrease in the receivables turnover ratio to 4.61. This suggests that there may have been some challenges in collecting accounts receivable efficiently during that year.

Overall, while there have been fluctuations in the receivables turnover ratio over the past five years, Progress Software Corporation has generally demonstrated a good ability to collect its accounts receivable efficiently, with some variability in performance from year to year. It would be essential for the company to monitor this ratio closely and potentially implement strategies to improve collection processes in periods of lower turnover.