Progress Software Corporation (PRGS)

Cash ratio

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Cash and cash equivalents	US$ in thousands	118,077	126,958	256,277	155,406	97,990
Short-term investments	US$ in thousands	—	—	0	1,967	8,005
Total current liabilities	US$ in thousands	455,145	352,118	318,004	322,929	262,543
Cash ratio		0.26	0.36	0.81	0.49	0.40

November 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($118,077K + $—K) ÷ $455,145K
= 0.26

The cash ratio of Progress Software Corporation has shown fluctuations over the past five years. In November 30, 2020, the company had a cash ratio of 0.40, indicating that it had 40 cents of cash and cash equivalents for every dollar of current liabilities. The ratio improved to 0.49 in November 30, 2021, suggesting a better liquidity position. This was further enhanced in November 30, 2022, with a significant increase to 0.81, indicating a stronger ability to meet its short-term obligations solely with cash on hand.

However, in November 30, 2023, the cash ratio decreased to 0.36, which might raise concerns about the company’s liquidity position and ability to cover its current liabilities with available cash. The ratio declined further to 0.26 in November 30, 2024, signaling a significant reduction in liquidity.

Overall, while the company's cash ratio has fluctuated over the years, it is essential for Progress Software Corporation to carefully monitor its liquidity position to ensure it can meet its short-term obligations efficiently.