Progress Software Corporation (PRGS)

Debt-to-assets ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Long-term debt	US$ in thousands	710,883	611,845	534,527	364,260	284,002
Total assets	US$ in thousands	1,602,780	1,411,480	1,363,540	1,041,780	881,271
Debt-to-assets ratio		0.44	0.43	0.39	0.35	0.32

November 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $710,883K ÷ $1,602,780K
= 0.44

The debt-to-assets ratio of Progress Software Corp. has been gradually increasing over the past five years, indicating a higher proportion of debt relative to its total assets. This trend suggests that the company may be relying more on debt financing to support its operations and growth initiatives.

The ratio stood at 0.33 in 2019 and has since increased to 0.45 in 2023. This upward trajectory indicates a growing leverage position, which can carry implications for the company's financial risk and solvency.

While higher debt levels can potentially amplify returns for shareholders, they also bring heightened financial risk. It is essential for investors and stakeholders to closely monitor how Progress Software Corp. manages its debt levels and whether the increased leverage is effectively contributing to the company's overall financial performance and shareholder value.