Digi International Inc (DGII)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	123,185	188,051	222,448	45,799	58,980
Total assets	US$ in thousands	815,075	835,531	853,895	619,531	528,682
Debt-to-assets ratio		0.15	0.23	0.26	0.07	0.11

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $123,185K ÷ $815,075K
= 0.15

The debt-to-assets ratio for Digi International Inc has fluctuated over the past five years. In 2024, the ratio stands at 0.15, indicating that the company has a relatively low level of debt compared to its total assets. This suggests a healthy financial position with a lower reliance on debt financing.

Comparing this to previous years, we observe a downward trend from 0.23 in 2023 and 0.26 in 2022. This reduction in the ratio indicates that the company has been effectively managing its debt levels in relation to its assets over the recent years.

The significant decrease in the debt-to-assets ratio from 2022 to 2023 could suggest a successful deleveraging strategy by the company. Furthermore, the ratio remained relatively stable between 2020 and 2021, before experiencing further reductions in 2023 and 2024.

Overall, the decreasing trend in the debt-to-assets ratio indicates that Digi International Inc has been improving its financial stability by reducing its debt burden in relation to its total assets. These developments imply a positive financial outlook for the company as it continues to strengthen its balance sheet.