Progress Software Corporation (PRGS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	438,788	459,715	398,504	412,489	346,013
ROE		15.60%	15.27%	23.86%	19.01%	23.04%

November 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $68,438K ÷ $438,788K
= 15.60%

Progress Software Corporation's return on equity (ROE) has shown some fluctuations over the years. In November 2020, the ROE stood at 23.04%, indicating that the company generated $0.23 in profit for every dollar of shareholder equity. This metric decreased to 19.01% by November 2021, suggesting a slight decrease in profitability.

However, in November 2022, Progress Software Corporation experienced an improvement in ROE, reaching 23.86%. This increase indicates that the company was able to enhance its efficiency in generating profits from shareholder equity.

Subsequently, there was a decline in ROE to 15.27% by November 2023, which may raise concerns about the company's ability to generate returns for its shareholders. The trend continued in November 2024, with ROE at 15.60%, showing the need for Performance Software Corporation to address factors affecting its profitability.

Overall, while ROE can be influenced by various factors, including profit margins, asset turnover, and financial leverage, the fluctuations in Progress Software Corporation's ROE reflect changes in the company's profitability and efficiency in utilizing shareholder equity.