Progress Software Corporation (PRGS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	123,948	124,506	113,641	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
Long-term debt	US$ in thousands	1,526,270	795,282	794,277	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
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
Return on total capital		6.31%	10.20%	9.50%	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%

November 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $123,948K ÷ ($1,526,270K + $438,788K)
= 6.31%

Progress Software Corporation's return on total capital has shown fluctuations over the past few years. The ratio has ranged from a low of 6.31% as of November 30, 2024, to a high of 15.04% as of November 30, 2020.

The trend indicates a general increase in return on total capital from the end of 2020 until mid-2022, peaking at 13.87% as of May 31, 2022. However, there has been some variability in the ratio since then, with a slight decline to 10.06% as of August 31, 2023.

Overall, Progress Software Corporation has managed to maintain a return on total capital above single digits, indicating reasonable efficiency in generating returns from its total capital base. However, the recent decrease in the ratio suggests a need for further analysis to understand the drivers behind the fluctuations and to ensure sustainable performance in the future.