Digi International Inc (DGII)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	194,684	188,051	194,556	214,062	218,568	222,448	240,702	260,208	275,340	45,799	45,670	45,541	43,483	58,980	74,477	104,973	105,470	—	—	—
Total stockholders’ equity	US$ in thousands	542,075	540,488	531,583	520,179	509,928	501,513	486,922	480,504	474,032	472,517	465,471	459,152	377,642	371,500	363,305	358,363	356,315	348,978	345,076	340,838
Debt-to-capital ratio		0.26	0.26	0.27	0.29	0.30	0.31	0.33	0.35	0.37	0.09	0.09	0.09	0.10	0.14	0.17	0.23	0.23	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $194,684K ÷ ($194,684K + $542,075K)
= 0.26

The trend in Digi International, Inc.'s debt-to-capital ratio over the past eight quarters indicates a slight increase from 0.26 in Q1 2024 to 0.36 in Q2 2022. This implies that the company has been relying more on debt to finance its operations compared to its capital structure during this period. The gradual rise in the ratio suggests a potential increase in financial risk as a higher proportion of debt is used to fund the company's assets and operations. It is essential for investors and stakeholders to monitor this trend closely to assess the company's financial health and ability to manage its debt obligations effectively.