Progress Software Corporation (PRGS)

Total asset 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
Total assets	US$ in thousands	2,526,970	1,602,780	1,411,480	1,363,540	1,041,780
Total asset turnover		0.30	0.43	0.43	0.39	0.42

November 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $753,409K ÷ $2,526,970K
= 0.30

Based on the data provided, Progress Software Corporation's total asset turnover has shown some fluctuations over the past five years. The total asset turnover ratio measures how efficiently the company is utilizing its assets to generate sales.

In November 30, 2020, the total asset turnover was 0.42, indicating that the company generated $0.42 in sales for every $1 of assets it held. This was slightly below average efficiency.

In the following year, November 30, 2021, the total asset turnover decreased to 0.39, suggesting a slight decline in asset utilization efficiency. The company generated $0.39 in sales for every $1 of assets.

However, in November 30, 2022 and November 30, 2023, the total asset turnover improved to 0.43, indicating that Progress Software Corporation was able to increase its sales generated from its assets. This suggests improved efficiency in utilizing assets to generate revenue.

In the most recent year, November 30, 2024, the total asset turnover dropped significantly to 0.30, which may raise concerns as it shows a decline in asset utilization efficiency. The company was only generating $0.30 in sales for every $1 of assets it held, which is lower compared to previous years.

Overall, while there were fluctuations in total asset turnover over the five-year period, it is important for Progress Software Corporation to focus on maintaining or improving asset utilization efficiency to ensure sustainable growth and profitability.