Progress Software Corporation (PRGS)

Return on assets (ROA)

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020
Net income (ttm)	US$ in thousands	68,438	82,626	73,260	69,162	70,197	78,570	81,269	98,289	95,069	86,287	95,466	79,913	78,420	81,155	74,156	77,567	79,722	57,321	46,901	38,114
Total assets	US$ in thousands	2,526,970	1,619,880	1,586,380	1,547,770	1,602,780	1,597,470	1,601,880	1,643,610	1,411,480	1,346,290	1,354,580	1,353,120	1,363,540	1,275,490	1,239,990	1,027,060	1,041,780	919,468	895,602	890,182
ROA		2.71%	5.10%	4.62%	4.47%	4.38%	4.92%	5.07%	5.98%	6.74%	6.41%	7.05%	5.91%	5.75%	6.36%	5.98%	7.55%	7.65%	6.23%	5.24%	4.28%

November 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $68,438K ÷ $2,526,970K
= 2.71%

Progress Software Corporation's return on assets (ROA) has shown some fluctuations over the reported periods. ROA indicates the efficiency of the company in generating profit relative to its total assets.

From February 2020 to November 2021, there was a consistent increase in ROA from 4.28% to 7.65%, reflecting improving asset utilization and profitability. This upward trend suggests the company was effectively using its assets to generate earnings during this period.

However, from February 2022 to November 2024, the ROA started to decline, fluctuating between 2.71% and 7.05%. The decrease in ROA after November 2021 may indicate a potential decline in asset efficiency or profitability. The fluctuation in ROA in more recent periods could be a result of various factors such as changes in market conditions, operational challenges, or strategic decisions made by the company.

Overall, further analysis of Progress Software Corporation's financial performance, including examining other financial ratios and qualitative factors, is recommended to gain a deeper understanding of the company's operational efficiency and profitability over time.