Progress Software Corporation (PRGS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	438,788	425,612	401,667	461,743	459,715	445,046	418,815	413,443	398,504	366,973	372,146	368,323	412,489	396,773	365,721	352,553	346,013	368,166	339,961	327,957
ROE		15.60%	19.41%	18.24%	14.98%	15.27%	17.65%	19.40%	23.77%	23.86%	23.51%	25.65%	21.70%	19.01%	20.45%	20.28%	22.00%	23.04%	15.57%	13.80%	11.62%

November 30, 2024 calculation

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

Progress Software Corporation's return on equity (ROE) has shown some fluctuations over the past few years. From February 29, 2020, to May 31, 2020, the ROE increased from 11.62% to 13.80%, indicating a slight improvement in the company's efficiency in generating profits from shareholders' equity.

Subsequently, the ROE continued to rise steadily, reaching its peak at 25.65% on May 31, 2022. This significant increase suggests that Progress Software effectively utilized its equity to generate higher returns for its shareholders during this period.

However, after reaching the peak, the ROE started to decline gradually. As of November 30, 2024, the ROE stood at 15.60%, reflecting a decrease from the peak level observed in May 2022. This decline may indicate a potential decrease in profitability or efficiency in utilizing equity to generate profits.

Overall, despite the fluctuations, Progress Software Corporation has generally maintained a healthy ROE above 10% over the analyzed period, indicating that the company has been effective in generating profits relative to shareholders' equity. Investors and stakeholders may continue to monitor the ROE trend to assess the company's financial performance and management effectiveness in the future.