Progress Software Corporation (PRGS)

Debt-to-capital ratio

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020
Long-term debt	US$ in thousands	1,526,270	795,282	794,277	691,262	710,883	743,634	776,362	804,102	611,845	612,887	613,904	614,934	534,527	538,658	542,780	343,758	364,260	271,261	276,762	280,382
Total stockholders’ equity	US$ in thousands	438,788	425,612	401,667	461,743	459,715	445,046	418,815	413,443	398,504	366,973	372,146	368,323	412,489	396,773	365,721	352,553	346,013	368,166	339,961	327,957
Debt-to-capital ratio		0.78	0.65	0.66	0.60	0.61	0.63	0.65	0.66	0.61	0.63	0.62	0.63	0.56	0.58	0.60	0.49	0.51	0.42	0.45	0.46

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 some fluctuations over the recorded periods, ranging from 0.42 to 0.78. The ratio was relatively stable around the 0.4 to 0.5 range in early 2020 and throughout most of 2021. However, there was a notable increase towards the end of 2021, peaking at 0.78.

Subsequently, the ratio decreased in early 2022 but then started to rise again, reaching 0.66 by mid-2024. This indicates that the company has been relying more on debt compared to its capital structure in recent periods.

The trend in the debt-to-capital ratio suggests that Progress Software Corporation may be taking on more debt relative to its equity, which could indicate increased financial leverage and potential financial risk. It would be important for stakeholders to monitor this ratio closely to ensure the company's financial health and stability over time.