Progress Software Corporation (PRGS)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 81.77% | 84.30% | 85.23% | 85.95% | 81.79% |
| Operating profit margin | 15.92% | 21.95% | 21.85% | 24.36% | 9.70% |
| Pretax margin | 11.47% | 19.48% | 17.98% | 21.86% | 6.89% |
| Net profit margin | 10.11% | 15.79% | 14.76% | 18.03% | 6.39% |
Progress Software Corp.'s profitability ratios have shown some fluctuation over the past five years. The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, has decreased slightly from 88.06% in 2019 to 86.12% in 2023, indicating a potential decrease in production efficiency or an increase in the cost of goods sold.
Similarly, the operating profit margin, which reflects the company's ability to generate profit from its core operations, has declined from 26.52% in 2020 to 18.69% in 2023, suggesting a decrease in operating efficiency or an increase in operating expenses.
The pretax margin, representing the percentage of each dollar of revenue that results in profit before taxes, has also seen fluctuations, with a notable decrease in 2023 compared to 2019. This could indicate changes in the company's tax burden or overall profitability.
The net profit margin, which indicates the company's ultimate profitability after all expenses, has followed a similar trend, declining from 18.03% in 2019 to 10.11% in 2023. This suggests that the company's bottom-line profitability has weakened over the past five years.
Overall, these ratios indicate some challenges to Progress Software Corp.'s profitability, possibly stemming from changes in its cost structure, operational efficiency, or tax burdens. Further analysis of the company's cost management and revenue generation strategies may be warranted to address these trends.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.90% | 9.36% | 8.51% | 10.34% | 4.55% |
| Return on assets (ROA) | 4.38% | 6.74% | 5.75% | 7.65% | 3.00% |
| Return on total capital | 9.43% | 13.17% | 12.20% | 15.04% | 6.25% |
| Return on equity (ROE) | 15.27% | 23.86% | 19.01% | 23.04% | 7.99% |
Progress Software Corp.'s profitability ratios show a declining trend over the last five years. The operating return on assets (Operating ROA) decreased from 9.28% in 2021 to 8.10% in 2023, indicating a decrease in the company's ability to generate profits from its assets solely through operations. Similarly, the return on assets (ROA) declined from 7.65% in 2020 to 4.38% in 2023, suggesting a decrease in overall profitability relative to the total assets.
The return on total capital and return on equity (ROE) also exhibited a declining trend. Return on total capital declined from 16.10% in 2020 to 10.97% in 2023, suggesting a reduced ability to generate returns from the total capital invested. The return on equity (ROE) decreased from 23.86% in 2022 to 15.27% in 2023, indicating a declining ability to generate returns for the shareholders.
Overall, the declining trend in these profitability ratios suggests a decrease in the company's overall profitability and efficiency in generating returns from its assets and capital over the five-year period.