Progress Software Corporation (PRGS)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	32,276	30,780	27,316	22,793	17,935	15,790	17,788	20,289	21,234	20,045	16,103	11,895	9,892	10,170	10,685	11,704	11,316	9,913	8,295	6,311
Interest coverage		3.40	3.59	4.38	5.34	7.76	8.43	6.88	6.74	5.56	5.77	7.08	8.46	10.51	10.50	7.59	5.48	4.75	3.87	6.66	9.21

February 29, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $109,616K ÷ $32,276K
= 3.40

Progress Software Corporation's interest coverage ratio has shown fluctuations over the past few quarters. The interest coverage ratio measures the company's ability to meet its interest obligations based on its earnings before interest and taxes (EBIT).

The interest coverage ratio for Progress Software Corporation ranged from a low of 3.40 in February 2020 to a high of 10.51 in February 2021, indicating variations in the company's ability to cover its interest expenses.

Overall, the trend shows that the company's interest coverage ratio has generally been healthy over the past few quarters, with the ratio consistently above 5. This indicates that Progress Software Corporation has been able to comfortably cover its interest payments with its operating profits.

It is important for investors and creditors to monitor the interest coverage ratio to assess the company's financial health and its ability to manage its debt obligations effectively.