Progress Software Corporation (PRGS)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	714,898	694,439	674,596	650,821	621,317	602,013	585,014	581,214	554,955	531,313	513,570	475,852	453,747	442,150	436,803	433,820	433,432	413,298	394,364	383,331
Receivables	US$ in thousands	88,811	125,825	99,726	87,183	93,347	97,834	82,258	64,733	86,601	99,815	77,031	64,045	77,573	84,040	60,463	54,527	62,184	72,820	63,617	52,040
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

February 29, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $714,898K ÷ $88,811K
= 8.05

Progress Software Corporation's receivables turnover ratio has shown fluctuations over the past 20 quarters. The highest receivables turnover ratio was 8.98 in the third quarter of fiscal year 2022, indicating that Progress Software was able to collect its accounts receivable nearly 9 times during that period.

On the other hand, the lowest receivables turnover ratio was 5.26 in the second quarter of fiscal year 2021, suggesting a slower collection of accounts receivable during that period.

Overall, the average receivables turnover ratio for Progress Software Corporation during this period was approximately 6.78. This indicates that, on average, the company collected its accounts receivable approximately 6.78 times a year.

The fluctuation in the receivables turnover ratio may indicate changes in the company's credit policies, customer payment behavior, or the overall efficiency of the company in collecting its outstanding receivables. It is essential for investors and stakeholders to monitor these ratios to assess the company's liquidity and collection efficiency over time.