Progress Software Corporation (PRGS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,602,780 | 1,411,480 | 1,363,540 | 1,041,780 | 881,271 |
| Operating ROA | 6.90% | 9.36% | 8.51% | 10.34% | 4.55% |
November 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $110,523K ÷ $1,602,780K
= 6.90%
To analyze the operating return on assets (operating ROA) of Progress Software Corp., we use the formula:
Operating ROA = Operating Income / Average Total Assets
Looking at the trend over the last five years, we observe a decrease in the operating ROA from 11.26% in 2020 to 8.10% in 2023. This suggests a declining ability to generate operating income from its assets over the period.
The decline in operating ROA could be attributed to various factors such as increased operating expenses, a decrease in operating income, or an increase in average total assets.
It is essential to delve deeper into the financial statements and analyze the components of operating income and total assets to better understand the reasons for the declining operating ROA. This analysis will provide valuable insights into the company's operational efficiency and asset utilization.
Peer comparison
Nov 30, 2023