Digi International Inc (DGII)

Financial leverage 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
Total assets	US$ in thousands	815,075	820,426	825,300	828,662	835,531	840,060	847,748	854,610	853,895	863,639	869,530	866,230	619,531	613,051	607,503	528,788	528,682	526,869	554,752	560,904
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
Financial leverage ratio		1.40	1.46	1.50	1.53	1.55	1.58	1.63	1.68	1.70	1.77	1.81	1.83	1.31	1.32	1.32	1.40	1.42	1.45	1.55	1.57

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $815,075K ÷ $581,035K
= 1.40

The financial leverage ratio of Digi International Inc has shown a general trend of increase over the past few quarters, starting from 1.31 in December 2021 to 1.70 in September 2022. This indicates that the company has been increasingly using debt to finance its operations and growth.

The ratio peaked at 1.83 in June 2022 but has fluctuated around the 1.50 to 1.80 range since then. A financial leverage ratio above 1 implies that the company has more debt than equity in its capital structure.

It is important to note that while a higher leverage ratio can amplify returns for shareholders during periods of growth, it also exposes the company to higher financial risk, especially during economic downturns or unfavorable market conditions.

Digi International Inc's management should carefully monitor its leverage ratio to ensure it remains at manageable levels and does not compromise the company's financial stability and ability to meet debt obligations.