Progress Software Corporation (PRGS)

Return on equity (ROE)

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Net income (ttm)	US$ in thousands	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	26,400	39,784	40,617
Total stockholders’ equity	US$ in thousands	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	330,282	332,952	315,347
ROE		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%	7.99%	11.95%	12.88%

February 29, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $69,162K ÷ $461,743K
= 14.98%

Progress Software Corporation's return on equity (ROE) has shown fluctuations over the past few quarters. ROE indicates the company's efficiency in generating profits from shareholders' equity. The trend in ROE for Progress Software Corporation has generally been positive, with ROE ranging from 7.99% to 25.65%.

The ROE peaked at 25.65% in the quarter ending May 31, 2022, indicating robust profitability relative to shareholders' equity at that time. However, the ROE saw a decline in the subsequent quarters, dropping to 14.98% as of Feb 29, 2024.

It is important to note that a higher ROE suggests better profitability and efficiency in the utilization of equity capital. The downward trend in ROE in recent quarters may signal potential challenges in generating profits relative to the equity invested. Further analysis of the company's financial performance and operational efficiency may provide insights into the factors impacting the ROE fluctuations.