Progress Software Corporation (PRGS)

Debt-to-equity 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-equity ratio		3.48	1.55	1.54	1.30	1.05

November 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,526,270K ÷ $438,788K
= 3.48

Progress Software Corporation's debt-to-equity ratio has shown a consistent increase over the five-year period from November 30, 2020, to November 30, 2024, starting at 1.05 and reaching 3.48. This upward trend indicates that the company has been relying more on debt financing relative to equity during this time period.

The ratio of 3.48 as of November 30, 2024, suggests that Progress Software Corporation has a higher level of debt compared to equity in its capital structure, which may increase financial risk and obligations. It indicates that the company may be facing potential challenges in managing its debt levels and servicing its debt payments.

Overall, the increasing debt-to-equity ratio of Progress Software Corporation raises concerns about the company's financial leverage and ability to sustain its debt obligations over the long term. Stakeholders and investors may need to closely monitor the company's debt levels and management strategy to ensure financial stability and future growth.