Progress Software Corporation (PRGS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	118,077	232,713	190,420	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
Short-term investments	US$ in thousands	—	75,814	—	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
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
Cash ratio		0.26	0.98	0.62	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

November 30, 2024 calculation

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

Progress Software Corporation's cash ratio has fluctuated over the past few years based on the provided data. The cash ratio is a liquidity ratio that measures the company's ability to cover its short-term obligations with its cash and cash equivalents.

From February 29, 2020, to May 31, 2021, the cash ratio steadily increased from 0.77 to 1.36, indicating an improvement in the company's liquidity position during this period. This suggests that Progress Software had a higher level of cash and cash equivalents relative to its current liabilities during these quarters.

However, from November 30, 2021, to August 31, 2024, the cash ratio experienced more variability, moving between 0.26 and 0.98. This fluctuation may suggest changes in the company's cash management or short-term obligations during these quarters.

It is worth noting that a higher cash ratio is generally preferred as it indicates a stronger ability to meet short-term obligations. Conversely, a lower cash ratio may raise concerns about the company's ability to cover its immediate liabilities.

Overall, a detailed analysis of the company's cash management practices, working capital requirements, and overall financial health would be necessary to provide a more comprehensive evaluation of Progress Software Corporation's cash ratio.