Progress Software Corporation (PRGS)
Profitability ratios
Return on sales
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.68% | 81.77% | 84.30% | 85.23% | 85.95% |
| Operating profit margin | 16.46% | 15.92% | 21.95% | 21.85% | 24.36% |
| Pretax margin | 12.51% | 11.47% | 19.48% | 17.98% | 21.86% |
| Net profit margin | 9.08% | 10.11% | 15.79% | 14.76% | 18.03% |
Progress Software Corporation's profitability ratios have shown some fluctuations over the past five years.
In terms of gross profit margin, the company has maintained a relatively high level, ranging from 81.77% to 85.95%. This indicates that Progress Software has been able to effectively control its production costs and generate a high percentage of revenue after deducting the cost of goods sold.
The operating profit margin has seen some variability, with a range between 15.92% and 24.36%. It suggests that the company's operating expenses relative to revenue have fluctuated, impacting the overall profitability of its core business operations.
The pretax margin, reflecting the company's profitability before accounting for taxes, has fluctuated between 11.47% and 21.86%. This indicates that Progress Software's ability to generate profit before tax has varied over the years, possibly influenced by changes in revenue or expenses.
Finally, the net profit margin, representing the company's profitability after all expenses, has shown a decline from 18.03% to 9.08% over the five-year period. This downward trend suggests that Progress Software's ability to convert revenue into net income has weakened, possibly due to rising expenses or other factors impacting profitability.
Overall, while Progress Software Corporation has maintained a strong gross profit margin, there are indications of some challenges in maintaining consistent levels of operating and net profit margins over the years. Monitoring and managing expenses effectively will be crucial for the company to sustain and improve its profitability in the future.
Return on investment
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.91% | 6.90% | 9.36% | 8.51% | 10.34% |
| Return on assets (ROA) | 2.71% | 4.38% | 6.74% | 5.75% | 7.65% |
| Return on total capital | 6.31% | 9.43% | 13.17% | 12.20% | 15.04% |
| Return on equity (ROE) | 15.60% | 15.27% | 23.86% | 19.01% | 23.04% |
Progress Software Corporation's profitability ratios have shown a decreasing trend over the years, indicating a potential decline in profitability.
- Operating return on assets (Operating ROA) decreased from 10.34% in November 2020 to 4.91% in November 2024. This indicates a decrease in the company's ability to generate operating profits from its assets over the years.
- Return on assets (ROA) declined from 7.65% in November 2020 to 2.71% in November 2024. This suggests that the company's overall profitability in relation to its total assets has decreased significantly.
- Return on total capital decreased from 15.04% in November 2020 to 6.31% in November 2024. This demonstrates a decline in the company's ability to generate returns from both debt and equity investments.
- Return on equity (ROE) also showed a decreasing trend from 23.04% in November 2020 to 15.60% in November 2024. This indicates a reduction in the company's ability to generate profits for its shareholders relative to their equity investments.
Overall, these declining profitability ratios suggest that Progress Software Corporation may be facing challenges in maintaining its profitability and efficiency in utilizing its assets and capital over the years.