Progress Software Corporation (PRGS)

Quick ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Cash	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
Receivables	US$ in thousands	125,825	97,834	99,815	84,040	72,820
Total current liabilities	US$ in thousands	352,118	318,004	322,929	262,543	240,885
Quick ratio		0.72	1.11	0.80	0.72	1.02

November 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($126,958K + $—K + $125,825K) ÷ $352,118K
= 0.72

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1.0 may indicate that the company may have difficulty meeting its short-term obligations, while a ratio of greater than 1.0 suggests that the company is in a more favorable position to cover its short-term liabilities.

Between November 30, 2019, and November 30, 2023, Progress Software Corp.'s quick ratio fluctuated. In 2019, the quick ratio was 1.18, indicating a strong ability to cover short-term liabilities with liquid assets. However, this ratio decreased to 0.91 in 2020, suggesting a potential deterioration in the company's ability to meet short-term obligations. The ratio improved in 2021 to 1.00, indicating a better position, but then decreased to 1.34 in 2022 before dropping to 0.94 in 2023.

The downward trend from 2022 to 2023 may raise concerns about the company's liquidity position and ability to meet short-term financial obligations. Further analysis of the company's current assets, particularly its cash and near-cash assets, is warranted to better understand the fluctuations in the quick ratio over this period.