Progress Software Corporation (PRGS)
Working capital 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 current assets | US$ in thousands | 368,813 | 330,788 | 426,053 | 337,808 | 238,935 |
| Total current liabilities | US$ in thousands | 455,145 | 352,118 | 318,004 | 322,929 | 262,543 |
| Working capital turnover | — | — | 5.57 | 35.71 | — |
November 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $753,409K ÷ ($368,813K – $455,145K)
= —
The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate revenue. Looking at the data provided for Progress Software Corporation:
1. November 30, 2020: No data available.
2. November 30, 2021: The working capital turnover ratio was 35.71, indicating that for every dollar of working capital, the company generated $35.71 of revenue during the year.
3. November 30, 2022: The working capital turnover ratio decreased to 5.57, suggesting a decrease in efficiency in utilizing working capital to generate revenue compared to the previous year.
4. November 30, 2023: No data available.
5. November 30, 2024: No data available.
The significant drop in the working capital turnover ratio from 2021 to 2022 raises concerns about the company's ability to efficiently convert working capital into revenue. It is important for the company to analyze the reasons behind this decline and take necessary steps to improve its working capital management to optimize the efficiency of its operations.
Peer comparison
Nov 30, 2024