Progress Software Corporation (PRGS)

Financial leverage ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Total assets	US$ in thousands	1,602,780	1,411,480	1,363,540	1,041,780	881,271
Total stockholders’ equity	US$ in thousands	459,715	398,504	412,489	346,013	330,282
Financial leverage ratio		3.49	3.54	3.31	3.01	2.67

November 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,602,780K ÷ $459,715K
= 3.49

The financial leverage ratio of Progress Software Corp. has shown an increasing trend over the past five years, reaching 3.49 in November 2023 from 2.67 in November 2019. This indicates a higher reliance on debt financing compared to equity. Although an increasing leverage ratio can potentially magnify returns on investment, it also raises the company's financial risk and interest payment obligations. Management should closely monitor the company's debt levels and evaluate the impact of leverage on overall financial performance and stability.