Progress Software Corporation (PRGS)

Debt-to-equity 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-equity ratio		1.50	1.55	1.67	1.85	1.94	1.54	1.67	1.65	1.67	1.30	1.36	1.48	0.98	1.05	0.74	0.81	0.85	0.86	0.86	0.92

February 29, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $691,262K ÷ $461,743K
= 1.50

Progress Software Corporation's debt-to-equity ratio has shown some fluctuations over the past several quarters. The ratio has generally been above 1, indicating that the company has relied more on debt financing compared to equity.

In the most recent quarter, as of February 29, 2024, the debt-to-equity ratio stands at 1.50, which suggests that for every dollar of equity, the company has $1.50 of debt. This ratio has decreased from the previous quarter, indicating a slightly lower level of debt relative to equity.

Looking back at the trend, we observe that the ratio peaked at 1.94 in the quarter ending February 28, 2023, and has since been on a downward trend. However, it is important to note that the ratio has been above 1 consistently, which may imply a higher financial risk compared to companies with lower debt levels.

Overall, monitoring Progress Software Corporation's debt-to-equity ratio over time can provide insights into its capital structure and financial risk management strategies. Further analysis of other financial metrics and industry benchmarks would be beneficial to assess the overall financial health and sustainability of the company.