Progress Software Corporation (PRGS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	133,222	126,958	137,999	125,531	107,981	256,277	224,115	224,863	171,666	155,406	379,895	357,360	107,698	97,990	220,575	193,222	161,094	154,259	124,020	103,249
Short-term investments	US$ in thousands	5,350	—	110	—	14,944	0	749	1,050	1,656	1,967	3,782	5,300	6,673	8,005	9,544	10,423	15,961	19,426	21,377	25,304
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
Cash ratio		0.44	0.36	0.43	0.39	0.36	0.81	0.80	0.79	0.61	0.49	1.41	1.36	0.43	0.40	1.01	0.90	0.77	0.72	0.68	0.63

February 29, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($133,222K + $5,350K) ÷ $312,208K
= 0.44

Progress Software Corporation's cash ratio has fluctuated over the past few quarters, ranging from a low of 0.36 to a high of 1.41. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.

The company's cash ratio has generally been above 1, indicating that it has sufficient cash on hand to cover its current liabilities. A cash ratio below 1 would signal that the company may have difficulty meeting its short-term obligations.

It is worth noting that the cash ratio experienced a significant spike to 1.41 in the third quarter of 2021, suggesting a temporary increase in the company's cash reserves relative to its short-term liabilities. This exceptional performance was followed by a decrease in the ratio in subsequent quarters.

Overall, Progress Software Corporation's cash ratio indicates a generally healthy liquidity position, although management should continue to monitor and manage its cash levels effectively to ensure the company's short-term solvency.