Progress Software Corporation (PRGS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.95 | 0.94 | 0.93 | 0.87 | 0.87 | 1.34 | 1.30 | 1.25 | 1.21 | 1.05 | 1.87 | 1.77 | 0.90 | 0.91 | 1.41 | 1.29 | 1.19 | 1.18 | 1.10 | 1.00 |
| Quick ratio | 0.73 | 0.72 | 0.73 | 0.66 | 0.64 | 1.11 | 1.10 | 1.02 | 0.92 | 0.80 | 1.70 | 1.60 | 0.72 | 0.72 | 1.28 | 1.15 | 1.04 | 1.02 | 0.97 | 0.88 |
| 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 |
Progress Software Corporation's liquidity ratios show fluctuating trends over the past few quarters. The current ratio, which measures the company's ability to pay its short-term liabilities with its current assets, has decreased from 1.34 in August 2022 to 0.95 in February 2024. This downward trend indicates a potential decline in the company's short-term liquidity position.
In terms of the quick ratio, which provides a more stringent measure by excluding inventory from current assets, there is a similar decreasing trend from 1.11 in August 2022 to 0.73 in February 2024. This suggests that the company may have difficulties meeting its short-term obligations without relying on inventory to generate cash.
The cash ratio, representing the company's ability to cover its current liabilities with its most liquid assets, shows a declining trend as well, from 0.81 in August 2022 to 0.44 in February 2024. This indicates that Progress Software Corporation may have limited cash reserves available to cover its immediate obligations.
Overall, the decreasing trends in all three liquidity ratios raise concerns about the company's short-term solvency and ability to meet its financial commitments. Management should closely monitor these ratios and take appropriate actions to improve the company's liquidity position.
Additional liquidity measure
| 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 conversion cycle | days | 18.15 | 30.46 | 26.60 | 24.54 | 15.67 | 42.94 | 39.12 | 11.16 | 35.71 | 40.04 | 22.56 | -9.87 | 5.85 | 10.74 | 14.55 | 0.39 | 2.04 | 12.87 | 23.60 | -2.37 |
The cash conversion cycle for Progress Software Corporation has varied over the historical periods provided. The cash conversion cycle represents the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales and back into cash. A shorter cash conversion cycle indicates that the company is able to generate cash quickly from its operations.
Based on the data, we observe fluctuations in the cash conversion cycle over the periods. For example, in some periods like Nov 30, 2021, the company had a negative cash conversion cycle, indicating that it was efficient in converting resources into cash quickly. This was followed by periods with longer cash conversion cycles, such as Nov 30, 2022, where the cycle extended to 42.94 days.
Overall, the company's cash conversion cycle has shown variability, with some periods indicating efficient cash management and others pointing to potential challenges in converting resources into cash. Analyzing trends in the cash conversion cycle can provide insights into the company's operational efficiency, working capital management, and liquidity positions.