Digi International Inc (DGII)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	835,531	853,895	619,531	528,682	398,698
Total stockholders’ equity	US$ in thousands	540,488	501,513	472,517	371,500	348,978
Financial leverage ratio		1.55	1.70	1.31	1.42	1.14

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $835,531K ÷ $540,488K
= 1.55

The financial leverage ratio of Digi International, Inc. has fluctuated over the past five years, indicating changes in the company's capital structure and financial risk. The ratio decreased from 1.14 in 2019 to 1.31 in 2021, suggesting a reduction in financial risk and potential reliance on debt. However, it increased to 1.70 in 2022 before decreasing to 1.55 in 2023. This indicates that the company may have been using more debt in 2022, but then adjusted its capital structure in 2023. Overall, the company's financial leverage has been relatively high, which could indicate a significant level of debt in its capital structure compared to equity. As such, further analysis of the company's debt management and ability to cover interest payments may be warranted.