Progress Software Corporation (PRGS)

Debt-to-equity 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-equity ratio		1.55	1.54	1.30	1.05	0.86

November 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $710,883K ÷ $459,715K
= 1.55

The debt-to-equity ratio measures the proportion of a company's financing that comes from creditors compared to shareholders. For Progress Software Corp., the trend in the debt-to-equity ratio has shown a consistent increase over the past five years.

In 2019, the ratio was 0.89, indicating that the company had a higher proportion of equity in its capital structure compared to debt. However, this ratio has steadily increased over the subsequent years, reaching 1.57 in 2023. This indicates that the company's reliance on debt for financing its operations has increased significantly.

A higher debt-to-equity ratio suggests that the company is financing more of its operations through debt, which can lead to higher financial risk due to interest obligations and potential difficulty in meeting debt repayments. It is essential for investors and stakeholders to monitor this trend closely, as an increasing debt-to-equity ratio may indicate a less favorable financial position for the company.

Overall, the upward trend in Progress Software Corp.'s debt-to-equity ratio raises concerns about the company's increasing reliance on debt for financing its operations, which could potentially affect its long-term financial stability and risk profile.