Progress Software Corporation (PRGS)

Solvency ratios

	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
Debt-to-assets ratio	0.45	0.44	0.47	0.48	0.49	0.43	0.46	0.45	0.45	0.39	0.42	0.44	0.33	0.35	0.30	0.31	0.31	0.32	0.33	0.35
Debt-to-capital ratio	0.60	0.61	0.63	0.65	0.66	0.61	0.63	0.62	0.63	0.56	0.58	0.60	0.49	0.51	0.42	0.45	0.46	0.46	0.46	0.48
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
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

Progress Software Corporation's solvency ratios indicate its ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.45 to 0.49 over the past few quarters, suggesting that the company has been able to effectively manage its debt levels in relation to its total assets.

The debt-to-capital ratio, which includes both debt and equity in the capital structure, has also remained relatively steady around 0.60 to 0.66. This ratio indicates the proportion of the company's capital that is financed through debt, and the consistency suggests a balanced approach to leveraging.

The debt-to-equity ratio, reflecting the company's reliance on debt financing compared to equity, has shown some fluctuations but generally remained within a range of 1.30 to 1.94. The higher ratios in the range indicate a higher level of financial risk, but the fluctuations suggest some variability in the company's capital structure.

Finally, the financial leverage ratio, which measures the company's total assets in relation to its equity, has also shown some variability but generally remained between 2.50 to 3.98. This ratio provides insights into the company's overall financial risk and leverage position, with lower ratios indicating a stronger equity base.

Overall, Progress Software Corporation's solvency ratios demonstrate a reasonable ability to manage its debt levels and maintain a balanced capital structure, though some fluctuations indicate potential shifts in the company's financial risk profile over the analyzed periods.

Coverage ratios

	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
Interest coverage	3.40	3.59	4.38	5.34	7.76	8.43	6.88	6.74	5.56	5.77	7.08	8.46	10.51	10.50	7.59	5.48	4.75	3.87	6.66	9.21

Progress Software Corporation's interest coverage ratio has shown variability over the past several quarters. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.

From Nov 30, 2019, to May 31, 2020, the interest coverage ratio ranged between 3.87 and 7.59, indicating a moderate ability to cover interest expenses. However, from Aug 31, 2020, to Nov 30, 2022, the company demonstrated a significant improvement in its interest coverage ratio, with values ranging from 5.48 to 10.51, indicating a strong ability to cover interest payments with its operating income.

The interest coverage ratio decreased in the subsequent quarters, with values ranging from 3.40 to 5.77 as of Feb 29, 2024. While the ratio remains above 1, signaling the company can cover its interest expenses, the downward trend suggests that Progress Software Corporation may be facing challenges in generating sufficient operating income to comfortably cover its interest obligations.

Overall, the fluctuations in the interest coverage ratio for Progress Software Corporation indicate a need for further monitoring of the company's financial performance and management of its debt to ensure sustainable operations and financial stability.