Digi International Inc (DGII)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	581,035	540,488	501,513	472,517	371,500
Debt-to-capital ratio		0.17	0.26	0.31	0.09	0.14

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $123,185K ÷ ($123,185K + $581,035K)
= 0.17

The debt-to-capital ratio of Digi International Inc has shown fluctuations over the past five years. In September 2024, the ratio stood at 0.17, indicating that 17% of the company's capital structure was funded by debt. This represents a decrease from the previous year when the ratio was 0.26.

Compared to the ratios in 2022 and 2023, the current ratio suggests a lower reliance on debt financing. In fact, the debt-to-capital ratio has been trending downward since 2023 when it was at 0.31, indicating a potential shift towards more equity financing.

On the other hand, the ratio in 2021 and 2020 was lower at 0.09 and 0.14 respectively, suggesting a relatively lower level of debt in the company's capital structure during those years.

Overall, the decreasing trend in the debt-to-capital ratio for Digi International Inc indicates a potential improvement in the company's solvency and financial risk management by reducing its reliance on debt to fund its operations and investments.