Digi International Inc (DGII)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	188,051	222,448	45,799	58,980	—
Total stockholders’ equity	US$ in thousands	540,488	501,513	472,517	371,500	348,978
Debt-to-capital ratio		0.26	0.31	0.09	0.14	0.00

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $188,051K ÷ ($188,051K + $540,488K)
= 0.26

The debt-to-capital ratio for Digi International, Inc. has exhibited fluctuations over the past five years. In 2019, the ratio was 0.00, indicating that the company had no debt relative to its capital. However, this ratio has been on an upward trend since then, reaching 0.27 in 2023. This indicates a notable increase in the proportion of debt to capital in the company's capital structure. It suggests that Digi International, Inc. has been relying more on debt financing in recent years to fund its operations and growth initiatives. It would be important to assess the reasons behind this shift in the capital structure and determine the impact of increased leverage on the company's overall financial risk and cost of capital.