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PRGS (Progress Software) ROE % : 1.06% (As of Nov. 2024)


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What is Progress Software ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Progress Software's annualized net income for the quarter that ended in Nov. 2024 was $4.6 Mil. Progress Software's average Total Stockholders Equity over the quarter that ended in Nov. 2024 was $432.2 Mil. Therefore, Progress Software's annualized ROE % for the quarter that ended in Nov. 2024 was 1.06%.

The historical rank and industry rank for Progress Software's ROE % or its related term are showing as below:

PRGS' s ROE % Range Over the Past 10 Years
Min: -12   Med: 14.71   Max: 23.58
Current: 15.64

During the past 13 years, Progress Software's highest ROE % was 23.58%. The lowest was -12.00%. And the median was 14.71%.

PRGS's ROE % is ranked better than
75.62% of 2609 companies
in the Software industry
Industry Median: 4.52 vs PRGS: 15.64

Progress Software ROE % Historical Data

The historical data trend for Progress Software's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Progress Software ROE % Chart

Progress Software Annual Data
Trend Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.58 20.68 23.45 16.36 15.23

Progress Software Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.56 19.65 15.00 27.53 1.06

Competitive Comparison of Progress Software's ROE %

For the Software - Infrastructure subindustry, Progress Software's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Progress Software's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Progress Software's ROE % distribution charts can be found below:

* The bar in red indicates where Progress Software's ROE % falls into.



Progress Software ROE % Calculation

Progress Software's annualized ROE % for the fiscal year that ended in Nov. 2024 is calculated as

ROE %=Net Income (A: Nov. 2024 )/( (Total Stockholders Equity (A: Nov. 2023 )+Total Stockholders Equity (A: Nov. 2024 ))/ count )
=68.438/( (459.715+438.788)/ 2 )
=68.438/449.2515
=15.23 %

Progress Software's annualized ROE % for the quarter that ended in Nov. 2024 is calculated as

ROE %=Net Income (Q: Nov. 2024 )/( (Total Stockholders Equity (Q: Aug. 2024 )+Total Stockholders Equity (Q: Nov. 2024 ))/ count )
=4.588/( (425.612+438.788)/ 2 )
=4.588/432.2
=1.06 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Nov. 2024) net income data. ROE % is displayed in the 30-year financial page.


Progress Software  (NAS:PRGS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Nov. 2024 )
=Net Income/Total Stockholders Equity
=4.588/432.2
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4.588 / 859.844)*(859.844 / 2073.425)*(2073.425 / 432.2)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.53 %*0.4147*4.7974
=ROA %*Equity Multiplier
=0.22 %*4.7974
=1.06 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Nov. 2024 )
=Net Income/Total Stockholders Equity
=4.588/432.2
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4.588 / 49) * (49 / 173.328) * (173.328 / 859.844) * (859.844 / 2073.425) * (2073.425 / 432.2)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.0936 * 0.2827 * 20.16 % * 0.4147 * 4.7974
=1.06 %

Note: The net income data used here is four times the quarterly (Nov. 2024) net income data. The Revenue data used here is four times the quarterly (Nov. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Progress Software ROE % Related Terms

Thank you for viewing the detailed overview of Progress Software's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Progress Software Business Description

Traded in Other Exchanges
Address
15 Wayside Road, Suite 400, Burlington, MA, USA, 01803
Progress Software Corporation provides software operate in one operating segment: software products for the development, deployment, and management of responsible, AI-powered applications and digital experiences. Following are products: Chef, Corticon, Data Direct, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, WhatsUp Gold. Geographical regions include United States, Canada, EMEA, Latin America, and Asia Pacific.
Executives
Domenic Lococo officer: Chief Accounting Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Ian Pitt officer: Chief Information Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Loren Jarrett officer: Chief Marketing Officer C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DR., BEDFORD MA 01730
Anthony Folger officer: Chief Financial Officer C/O CARBONITE, INC., 177 HUNTINGTON AVENUE, BOSTON MA 02115
Sundar Subramanian officer: EVP/GM DevSecOps C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Yufan Stephanie Wang officer: Chief Legal Officer C/O PROGRESS SOFTWARE CORPORATION, 15 WAYSIDE ROAD, SUITE 400, BURLINGTON MA 01803
Yogesh K Gupta director, officer: Chief Executive Officer C/O PROGRESS SOFTWARE CORPORATION, 15 WAYSIDE ROAD, SUITE 400, BURLINGTON MA 01803
Kathryn Kulikoski officer: CHIEF PEOPLE OFFICER C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
John Ainsworth officer: Senior Vice President C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DR., BEDFORD MA 01730
David Krall director C/O AVID TECHNOLOGY INC, ONE PARK WEST, TEWKSBURY MA 01876
Charles Francis Kane director 14 OAK PARK DRIVE, BEDFORD MA 01730
Jeremy Segal officer: Senior Vice President C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Jennifer Ortiz officer: EVP, Corporate Marketing C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
John R Egan director 176 SOUTH ST., HOPKINTON MA 01748
Gary Quinn officer: Senior Vice President C/O COMPUTER ASSOCIATES INTER INC, ONE COMPUTER ASSOC PLAZA, ISLANDIA NY 11749