Progress Software Corporation (PRGS)

Working capital 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
Total current assets	US$ in thousands	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	284,665	236,294	204,306
Total current liabilities	US$ in thousands	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	240,885	215,332	204,199
Working capital turnover		—	—	—	—	—	5.57	6.90	8.11	9.42	35.71	2.16	2.32	—	—	4.72	6.55	9.85	9.44	18.81	3,582.53

February 29, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $714,898K ÷ ($297,256K – $312,208K)
= —

Progress Software Corporation's working capital turnover has fluctuated significantly over the past few years. The metric, which measures how efficiently a company utilizes its working capital to generate sales, saw a sharp increase from November 2022 to August 2022, reaching 8.11. This suggests that the company was able to efficiently convert its working capital into revenue during that period.

Subsequently, the working capital turnover continued to rise, peaking at 35.71 in November 2021, indicating a substantial improvement in the company's working capital management efficiency. However, this peak was followed by a notable decline to 2.16 in August 2021, signifying a decrease in the efficiency of working capital utilization.

The metric fluctuated further in subsequent periods, with varying levels of working capital turnover. Notably, in February 2020 and May 2020, the working capital turnover stood at 9.85 and 9.44, respectively, indicating a relatively efficient use of working capital during those periods.

The working capital turnover figure of 3,582.53 reported in the second half of 2019 seems to be an outlier compared to the other values provided. This extremely high number may be due to data anomalies or errors in reporting.

Overall, it is essential for Progress Software Corporation to closely monitor its working capital turnover and strive for consistency in efficiently utilizing its working capital to drive sales and profitability.