Progress Software Corporation (PRGS)

Working capital 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
Total current assets	US$ in thousands	330,788	426,053	337,808	238,935	284,665
Total current liabilities	US$ in thousands	352,118	318,004	322,929	262,543	240,885
Working capital turnover		—	5.57	35.71	—	9.44

November 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $694,439K ÷ ($330,788K – $352,118K)
= —

The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.

Reviewing the data for Progress Software Corp., we observe that the working capital turnover ratio was not available for the fiscal years ending in November 30, 2023, and November 30, 2020. However, in the available years, there are significant fluctuations in the ratio. In Nov 30, 2022, the ratio was 5.57, which increased from the previous year's 35.71 in Nov 30, 2021, then decreased again in Nov 30, 2019, to 9.44.

The sharp fluctuation between 2021 and 2022 could indicate a change in the company's working capital management or revenue generation. While a high ratio in 2021 could signify effective use of working capital to generate revenue, the substantial decrease in 2022 might suggest a change in the working capital structure or a decrease in revenue generation efficiency.

Furthermore, the unavailability of data for 2020 and 2023 hinders the ability to comprehensively analyze the trend of the working capital turnover ratio over these years.

In conclusion, the working capital turnover ratio for Progress Software Corp. exhibits significant fluctuations and an inconsistent trend over the available data, making it challenging to draw a definitive conclusion about the company's efficiency in utilizing working capital to generate revenue.