Digi International Inc (DGII)

Debt-to-equity 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-equity ratio		0.21	0.27	0.31	0.36	0.35	0.37	0.41	0.43	0.44	0.49	0.54	0.58	0.10	0.10	0.10	0.12	0.16	0.20	0.29	0.30

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 been fluctuating over the past few quarters. The ratio decreased from 0.30 in March 2020 to 0.10 in the subsequent periods up to June 2021, indicating a significant reduction in debt relative to equity during that period.

However, starting from September 2021, the debt-to-equity ratio began increasing consistently, reaching a peak of 0.58 in March 2022. This increase suggests that the company took on more debt relative to equity, potentially to fund growth initiatives or other strategic investments.

Subsequently, the ratio declined steadily to 0.21 by September 2024. This decrease could indicate either a reduction in debt levels, an increase in shareholder equity, or a combination of both.

Overall, the trend in the debt-to-equity ratio of Digi International Inc reflects fluctuations in the company's capital structure and its approach to financing its operations and growth. Investors and stakeholders should continue to monitor this ratio to assess the company's financial leverage and risk profile.