Progress Software Corporation (PRGS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	109,616	110,437	119,577	121,784	139,162	133,045	122,466	136,792	117,956	115,579	114,065	100,581	103,976	106,805	81,116	64,146	53,720	38,408	55,209	58,125
Long-term debt	US$ in thousands	691,262	710,883	743,634	776,362	804,102	611,845	612,887	613,904	614,934	534,527	538,658	542,780	343,758	364,260	271,261	276,762	280,382	284,002	287,622	291,194
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
Return on total capital		9.51%	9.43%	10.06%	10.19%	11.43%	13.17%	12.50%	13.87%	12.00%	12.20%	12.19%	11.07%	14.93%	15.04%	12.69%	10.40%	8.83%	6.25%	8.90%	9.58%

February 29, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $109,616K ÷ ($691,262K + $461,743K)
= 9.51%

Progress Software Corporation's return on total capital has shown fluctuations over the past 20 quarters. The ratio has ranged from a low of 6.25% in the first quarter of fiscal year 2020 to a high of 15.04% in the third quarter of fiscal year 2021.

In the most recent quarter, ending on February 29, 2024, the return on total capital was 9.51%, showing a slight increase from the previous quarter's 9.43%. Despite the variability in the ratio, the company has generally maintained a return on total capital above 10% in the previous quarters, indicating efficient utilization of both debt and equity capital to generate profits.

It is essential for stakeholders to continue monitoring the trend in the return on total capital to assess the company's ability to generate profits relative to the total capital employed. This analysis can provide insights into the company's operational efficiency and financial health over time.