Progress Software Corporation (PRGS)

Debt-to-equity 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-equity ratio		3.48	1.87	1.98	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

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 displayed fluctuations over the past few years. The ratio stood at 0.85 as of February 29, 2020, indicating a moderate level of debt in relation to equity. Subsequently, the ratio decreased to 0.74 by August 31, 2020, suggesting a lower reliance on debt financing. However, the ratio increased to 1.05 by November 30, 2020, and further rose to 1.48 by May 31, 2021, indicating a significant increase in debt relative to equity during this period.

The ratio remained elevated, hovering around 1.30 to 1.98 from November 2021 to May 2024, indicating a higher proportion of debt in the capital structure. Notably, the ratio spiked to 3.48 as of November 30, 2024, reflecting a substantial increase in debt compared to equity at that point in time.

Overall, the trend in Progress Software Corporation's debt-to-equity ratio shows fluctuations, with periods of increasing debt levels relative to equity. This may indicate varying levels of financial leverage and potential shifts in the company's capital structure over the years. A high debt-to-equity ratio can suggest higher financial risk and a greater reliance on debt financing, which investors and analysts should consider in evaluating the company's financial health and stability.