Progress Software Corporation (PRGS)

Debt-to-capital ratio

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Long-term debt	US$ in thousands	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	284,002	287,622	291,194
Total stockholders’ equity	US$ in thousands	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	330,282	332,952	315,347
Debt-to-capital ratio		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	0.46	0.46	0.48

February 29, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $691,262K ÷ ($691,262K + $461,743K)
= 0.60

Progress Software Corporation's debt-to-capital ratio has shown some fluctuations over the past few quarters. The ratio has ranged from a low of 0.42 to a high of 0.66 during the period under review. Overall, the trend in the debt-to-capital ratio has been slightly upward, with some variability.

The ratio has generally been above 0.50, indicating that Progress Software has a significant portion of its capital structure financed by debt. This suggests that the company relies on debt financing to support its operations and growth initiatives.

It is important to note that a higher debt-to-capital ratio could indicate that the company carries a higher level of financial risk, as it has a larger proportion of debt relative to its total capital. This could potentially impact the company's financial flexibility and ability to weather economic downturns or changes in interest rates.

However, the ratio is just one financial metric, and it should be analyzed in conjunction with other financial ratios and qualitative factors to get a comprehensive view of the company's overall financial health and risk profile.