Progress Software Corporation (PRGS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	459,715	398,504	412,489	346,013	330,282
Debt-to-capital ratio		0.61	0.61	0.56	0.51	0.46

November 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $710,883K ÷ ($710,883K + $459,715K)
= 0.61

The debt-to-capital ratio of Progress Software Corp. has shown a consistent upward trend over the past five years, increasing from 0.47 in November 2019 to 0.61 in November 2023. This indicates that the company is relying more on debt financing relative to its total capital structure. The ratio surpassed the 0.5 mark in November 2021, suggesting a significant reliance on debt to fund its operations and growth initiatives.

This trend may raise concerns about the company's overall financial risk, as a higher debt-to-capital ratio implies a greater proportion of debt in the company's capital structure, potentially leading to increased interest expense and financial leverage. It is essential for investors and stakeholders to closely monitor this trend and assess the company's ability to manage its debt levels effectively while maintaining sustainable profitability and financial stability.