Progress Software Corporation (PRGS)

Working capital turnover

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Revenue (ttm)	US$ in thousands	753,409	715,418	711,724	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
Total current assets	US$ in thousands	368,813	388,557	342,983	297,256	330,788	302,840	281,082	292,701	426,053	364,434	355,869	342,622	337,808	508,897	470,968	239,309	238,935	320,206	291,398	274,738
Total current liabilities	US$ in thousands	455,145	314,908	307,221	312,208	352,118	324,703	323,494	337,157	318,004	279,683	284,229	283,730	322,929	271,608	266,077	265,740	262,543	227,691	225,172	230,722
Working capital turnover		—	9.71	19.90	—	—	—	—	—	5.57	6.90	8.11	9.42	35.71	2.16	2.32	—	—	4.72	6.55	9.85

November 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $753,409K ÷ ($368,813K – $455,145K)
= —

Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate sales. It is calculated by dividing net sales by average working capital. A higher working capital turnover ratio signifies better efficiency in utilizing working capital.

Analyzing the data provided for Progress Software Corporation, we observe fluctuations in the working capital turnover ratio over the reported periods.

In May 2020, the ratio decreased to 6.55 from the previous value of 9.85 in February 2020, indicating a decline in the company's ability to generate sales using its working capital efficiently. This declining trend continued as the ratio further decreased to 4.72 in August 2020.

Notably, there was a significant increase in the ratio to 35.71 in November 2021, which suggests a substantial improvement in the company's working capital efficiency during that period. This spike in efficiency was followed by a gradual decrease in the ratio over the subsequent periods.

It is essential to note that there are certain periods where the working capital turnover ratio was not provided (indicated by "\u2014"). This lack of data limits our ability to fully assess the company's performance during those periods.

Overall, the analysis of Progress Software Corporation's working capital turnover indicates varying levels of efficiency in utilizing working capital to generate sales over the reported periods, with some periods showing significant improvements and others showing relative stability or decline.