Progress Software Corporation (PRGS)

Debt-to-capital ratio

Nov 30, 2024 Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020
Long-term debt US$ in thousands 1,526,270 710,883 611,845 534,527 364,260
Total stockholders’ equity US$ in thousands 438,788 459,715 398,504 412,489 346,013
Debt-to-capital ratio 0.78 0.61 0.61 0.56 0.51

November 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,526,270K ÷ ($1,526,270K + $438,788K)
= 0.78

Progress Software Corporation's debt-to-capital ratio has shown a gradual increase over the years, starting from 0.51 as of November 30, 2020, and reaching 0.78 as of November 30, 2024. This indicates that the company's reliance on debt as a source of financing has grown over the period analyzed. As the ratio exceeds 0.5 in recent years, it suggests that more than half of the company's capital structure is composed of debt.

It is important to monitor this trend closely as a higher debt-to-capital ratio can indicate increased financial risk and potential difficulty in meeting debt obligations. Investors and creditors may view a rising debt-to-capital ratio unfavorably, as it may signal lower financial stability and potential challenges in managing debt repayments. Further analysis of the company's debt management strategies and financial performance is recommended to assess the overall financial health and sustainability of Progress Software Corporation.