Digi International Inc (DGII)

Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of Digi International Inc over the past five years, we observe a generally improving trend from 2020 to 2022, followed by a slight deterioration in 2023 and 2024.

The debt-to-assets ratio indicates the proportion of a company's assets financed by debt. Digi International Inc's debt-to-assets ratio has been decreasing steadily from 0.26 in 2022 to 0.15 in 2024, suggesting a healthier financial position in terms of asset financing.

The debt-to-capital ratio and debt-to-equity ratio also show a decreasing trend over the years, indicating a reduced reliance on debt for capital funding. This suggests that Digi International Inc is increasingly using more of its own funds or equity to finance its operations and growth.

Furthermore, the financial leverage ratio has fluctuated over the years but remains relatively stable, with a slight increase in 2024 compared to the previous year. This ratio reflects the company's financial risk and indicates how much of the company's assets are funded by debt.

Overall, Digi International Inc's solvency ratios suggest a positive trend towards lower debt levels and increased reliance on equity financing, which can enhance the company's overall financial stability and long-term sustainability. However, the slight uptick in some ratios in 2023 and 2024 may require monitoring to ensure that the company's debt levels remain at manageable levels.

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Coverage ratios

Interest coverage reveals the ability of Digi International Inc to meet its interest payment obligations. The trend shows some fluctuation over the years. In 2024, the interest coverage ratio stands at 2.48, indicating that the company's operating income is able to cover its interest expenses 2.48 times. This is an improvement from the previous year, where the ratio was 1.99. However, in 2022 and 2021, the interest coverage ratios were 1.95 and 7.50, respectively, demonstrating fluctuations in the company's ability to cover its interest expenses. Overall, while the company's interest coverage has varied, it is essential to further investigate the reasons behind the fluctuations to assess the company's financial stability and debt repayment capacity.