Progress Software Corporation (PRGS)

Progress Software Corporation's solvency ratios provide insights into the company's ability to meet its financial obligations in the long term.

1. Debt-to-assets ratio:
- The debt-to-assets ratio has been increasing over the years, from 0.35 in November 2020 to 0.60 in November 2024. This indicates that a larger proportion of the company's assets is financed by debt, which may increase financial risk.

2. Debt-to-capital ratio:
- Progress Software Corporation's debt-to-capital ratio has also shown an upward trend, rising from 0.51 in November 2020 to 0.78 in November 2024. This suggests that a significant portion of the company's capital structure is made up of debt, potentially increasing its financial leverage.

3. Debt-to-equity ratio:
- The debt-to-equity ratio has experienced a sharp increase from 1.05 in November 2020 to 3.48 in November 2024. This indicates that the company is relying more on debt financing relative to equity, which could indicate higher financial risk and potential challenges in meeting debt obligations.

4. Financial leverage ratio:
- The financial leverage ratio, which measures the ratio of total assets to equity, has fluctuated over the years but has shown an overall increasing trend. It rose from 3.01 in November 2020 to 5.76 in November 2024, indicating an increase in the company's financial risk and dependence on debt financing.

Overall, the increasing trend in Progress Software Corporation's solvency ratios, particularly the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, suggests a growing reliance on debt financing to support its operations. This may increase the company's financial risk and impact its ability to meet its long-term financial obligations.

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Coverage ratios

Progress Software Corporation's interest coverage ratio has experienced fluctuation over the past few years. As of November 30, 2020, the interest coverage ratio was at a healthy level of 10.50, indicating the company's ability to meet its interest obligations comfortably with its operating income. However, there was a notable decline in the interest coverage ratio to 5.77 by November 30, 2021, suggesting a potential decrease in the company's ability to cover its interest expenses.

By November 30, 2022, the interest coverage ratio improved to 8.43, indicating a better ability to meet interest payments compared to the previous year but still lower than the initial period in 2020. However, a significant drop was observed by November 30, 2023, with the interest coverage ratio falling to 3.59, signaling a potential strain on the company's ability to cover interest payments with its operating income.

The most recent data available as of November 30, 2024, shows a slight increase in the interest coverage ratio to 3.87. Although the ratio has improved slightly from the previous year, it still remains lower than the levels seen in 2020 and 2022.

Overall, the fluctuating trend in Progress Software Corporation's interest coverage ratio indicates varying degrees of financial risk regarding the company's ability to service its debt obligations. It is important for stakeholders to monitor the trend closely to assess the company's financial health and sustainability in meeting its interest expenses.