Digi International Inc (DGII)

Debt-to-equity 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-equity ratio		0.21	0.35	0.44	0.10	0.16

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $123,185K ÷ $581,035K
= 0.21

The debt-to-equity ratio of Digi International Inc has shown fluctuations over the past five years, indicating changes in the company's capital structure.

In September 2024, the debt-to-equity ratio was 0.21, which suggests that the company had a lower level of debt relative to its equity. This could indicate lower financial risk and a stronger equity position.

Comparing this to the previous year, there has been a decrease in the ratio from 0.35 to 0.21, signaling a reduction in the company's reliance on debt to finance its operations.

However, if we look back to September 2022 and 2021, the trend shows higher debt-to-equity ratios of 0.44 and 0.10 respectively. This could imply that the company had taken on relatively more debt in those years, possibly for expansion or investment purposes.

In September 2020, the ratio was 0.16, indicating a moderate level of debt compared to equity.

Overall, the trend in Digi International Inc's debt-to-equity ratio reflects variability in its capital structure and financial leverage over the years. It is essential for investors and stakeholders to closely monitor these ratios to understand the company's financial health and risk profile.