Digi International Inc (DGII)

Solvency ratios

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
Debt-to-assets ratio 0.15 0.18 0.21 0.23 0.23 0.23 0.25 0.26 0.26 0.28 0.30 0.32 0.07 0.07 0.07 0.08 0.11 0.14 0.19 0.19
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
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
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

The solvency ratios of Digi International Inc show the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio has been relatively stable around the range of 0.15 to 0.32 over the past few years, indicating that the company has maintained a conservative level of debt in relation to its total assets.

2. Debt-to-capital ratio has also exhibited a consistent trend, hovering between 0.17 and 0.37, showing the proportion of debt in the company's capital structure. The ratio has increased slightly over time, suggesting a higher reliance on debt financing.

3. Debt-to-equity ratio has shown a gradual increase from 0.21 to 0.58, indicating the proportion of debt to equity in the company's capital. The rising trend suggests a higher degree of leverage over the years.

4. Financial leverage ratio has also shown an increasing trend, reflecting the company's higher level of financial leverage from 1.31 to 1.83. This indicates that the company has been utilizing more debt to finance its operations and investments.

Overall, the trend in these solvency ratios suggests that Digi International Inc has been gradually increasing its reliance on debt financing, which may increase its financial risk but could also indicate a strategic decision to leverage opportunities for growth and expansion. Investors and stakeholders should monitor these ratios to assess the company's financial health and ability to service its debt obligations in the long term.

Coverage ratios

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
Interest coverage 2.48 1.95 1.64 1.63 1.99 2.24 2.25 2.24 1.95 1.64 1.85 2.45 7.50 7.69 5.20 3.15 3.09 2.86 3.51 11.22

The interest coverage ratio for Digi International Inc has shown fluctuation over the past eight quarters. It is a measure of the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

In the most recent quarter, ending September 30, 2024, the interest coverage ratio was 2.48, which implies that the company generated operating income 2.48 times the amount needed to cover its interest expenses for that period. This is a moderate level of coverage, indicating that the company's operating performance is sufficient to handle its interest payments without any immediate financial strain.

Looking at the trend over the past eight quarters, we observe some variability in the interest coverage ratio. The ratio has ranged from a low of 1.63 in December 2023 to a high of 7.69 in June 2021. The decreasing trend in the interest coverage ratio from the peak in June 2020 to the current level in September 2024 warrants attention, as it suggests a potential decrease in the company's ability to cover its interest expenses.

Overall, while the interest coverage ratio for Digi International Inc remains above 1, indicating that the company is generating sufficient operating income to cover its interest payments, the downward trend in recent quarters should be closely monitored to ensure the company's financial health and ability to meet its debt obligations in the future.