Progress Software Corporation (PRGS)
Return on assets (ROA)
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 68,438 | 70,197 | 95,069 | 78,420 | 79,722 |
| Total assets | US$ in thousands | 2,526,970 | 1,602,780 | 1,411,480 | 1,363,540 | 1,041,780 |
| ROA | 2.71% | 4.38% | 6.74% | 5.75% | 7.65% |
November 30, 2024 calculation
ROA = Net income ÷ Total assets
= $68,438K ÷ $2,526,970K
= 2.71%
Progress Software Corporation's return on assets (ROA) has shown a declining trend over the past five years. In November 2020, the ROA stood at 7.65%, indicating that the company generated $0.077 in profit for each dollar of assets it owned. However, by November 2024, the ROA had decreased to 2.71%, signifying a decline in profitability and efficiency in utilizing its assets.
This downward trend in ROA suggests that Progress Software Corporation may be facing challenges in generating earnings from its asset base. A decreasing ROA can indicate inefficiencies in asset allocation, operational management, or competitive pressures impacting the company's profitability.
Overall, it is crucial for Progress Software Corporation to closely monitor and address the factors contributing to the decline in ROA to improve its operational performance and enhance shareholder value in the long run.
Peer comparison
Nov 30, 2024