Progress Software Corporation (PRGS)

Cash ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cash and cash equivalents	US$ in thousands	126,958	256,277	155,406	97,990	154,259
Short-term investments	US$ in thousands	—	0	1,967	8,005	19,426
Total current liabilities	US$ in thousands	352,118	318,004	322,929	262,543	240,885
Cash ratio		0.36	0.81	0.49	0.40	0.72

November 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($126,958K + $—K) ÷ $352,118K
= 0.36

The cash ratio of Progress Software Corp. has exhibited some fluctuation over the past five years, as indicated by the values of 0.50, 0.94, 0.61, 0.50, and 0.83 for the years ending November 30, 2023, 2022, 2021, 2020, and 2019, respectively. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio is generally preferable as it indicates a stronger ability to meet short-term obligations.

The significant increase in the cash ratio from 0.50 in 2020 to 0.94 in 2022 suggests an improvement in the company's liquidity position. However, the subsequent decline to 0.50 in 2023 raises some concerns as it indicates a reduced ability to cover short-term liabilities with cash and cash equivalents. This trend may warrant further investigation into the company's cash management practices and its ability to generate and preserve cash in the short term.

Overall, the fluctuation in Progress Software Corp.'s cash ratio reflects changes in its liquidity position and highlights the importance of closely monitoring the company's ability to meet its short-term obligations with readily available funds.