Progress Software Corporation (PRGS)

Operating profit margin

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Operating income	US$ in thousands	110,523	132,131	116,102	107,728	40,084
Revenue	US$ in thousands	694,439	602,013	531,313	442,150	413,298
Operating profit margin		15.92%	21.95%	21.85%	24.36%	9.70%

November 30, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $110,523K ÷ $694,439K
= 15.92%

The operating profit margin of Progress Software Corp. has shown a declining trend over the past five years, from 26.52% in 2019 to 18.69% in 2023. This indicates that the company's ability to generate operating profits from its sales has diminished. A lower operating profit margin can be a cause for concern as it may reflect decreasing efficiency in cost management or pricing pressures. It could also suggest that the company's operating expenses are rising faster than its revenue growth. This trend warrants further investigation into the company's cost structure and revenue generation strategies to understand the factors driving this decline in operating profit margin.