Digi International Inc (DGII)

Debt-to-capital ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	123,185	151,618	171,751	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	581,035	563,054	549,627	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
Debt-to-capital ratio		0.17	0.21	0.24	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

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 for Digi International Inc has shown a general increasing trend over the past two years, indicating a higher proportion of debt relative to the company's total capital structure. The ratio has steadily risen from 0.09 as of December 2021 to 0.26 as of September 2024. This suggests that the company has been relying more on debt financing compared to its equity financing.

The ratio peaked at 0.37 in December 2021 but then decreased to 0.17 in September 2021 before starting to climb again. A higher debt-to-capital ratio may indicate increased financial risk for the company, as higher debt levels can lead to higher interest expenses, potentially impacting profitability and financial stability.

It is essential for stakeholders to monitor this ratio closely to assess Digi International Inc's ability to manage its debt levels effectively and sustainably. Additionally, management should focus on optimizing the company's capital structure to maintain a healthy balance between debt and equity to support long-term growth and financial health.