Progress Software Corporation (PRGS)

Financial leverage 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
Total assets	US$ in thousands	1,547,770	1,602,780	1,597,470	1,601,880	1,643,610	1,411,480	1,346,290	1,354,580	1,353,120	1,363,540	1,275,490	1,239,990	1,027,060	1,041,780	919,468	895,602	890,182	881,271	859,925	829,905
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
Financial leverage ratio		3.35	3.49	3.59	3.82	3.98	3.54	3.67	3.64	3.67	3.31	3.21	3.39	2.91	3.01	2.50	2.63	2.71	2.67	2.58	2.63

February 29, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,547,770K ÷ $461,743K
= 3.35

Progress Software Corporation's financial leverage ratio has been fluctuating over the past several quarters. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company relies on debt financing.

From February 2022 to February 2023, the financial leverage ratio increased steadily from 2.63 to 3.98, reflecting a significant rise in debt relative to equity. This sharp increase may suggest an aggressive debt financing strategy during this period.

Subsequently, from February 2023 to August 2023, the ratio continued to climb to 3.59 before reaching its peak at 3.82 in May 2023. This indicates that the company's debt levels remained elevated, potentially raising concerns about its financial risk and solvency.

However, from August 2023 to November 2023, there was a slight decrease in the financial leverage ratio to 3.49, followed by a further decline to 3.35 by February 2024. These reductions may signal that Progress Software Corporation has taken steps to moderate its debt levels and improve its financial stability.

Overall, the fluctuating trend in the financial leverage ratio for Progress Software Corporation suggests a varying degree of reliance on debt financing over the analyzed period. It would be essential for stakeholders to closely monitor the company's debt management practices and financial health to assess its long-term sustainability.