Progress Software Corporation (PRGS)
Operating return on assets (Operating ROA)
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 124,003 | 110,523 | 132,131 | 116,102 | 107,728 |
| Total assets | US$ in thousands | 2,526,970 | 1,602,780 | 1,411,480 | 1,363,540 | 1,041,780 |
| Operating ROA | 4.91% | 6.90% | 9.36% | 8.51% | 10.34% |
November 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $124,003K ÷ $2,526,970K
= 4.91%
Progress Software Corporation's operating return on assets (Operating ROA) has shown a declining trend over the past five years. Starting at 10.34% on November 30, 2020, it decreased to 8.51% by November 30, 2021, and further to 6.90% by November 30, 2023. This indicates that the company's ability to generate profits from its assets in its core operations has been weakening.
Although there was a slight improvement in Operating ROA to 9.36% by November 30, 2022, the ratio significantly dropped to 4.91% by November 30, 2024. This decline may suggest inefficiencies in asset utilization or a decrease in operating profitability.
It is essential for Progress Software Corporation to closely monitor its Operating ROA and identify the factors contributing to this downward trend to implement strategies that can enhance operational performance and maximize returns on its assets.
Peer comparison
Nov 30, 2024