Progress Software Corporation (PRGS)

Solvency ratios

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
Debt-to-assets ratio 0.60 0.49 0.50 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
Debt-to-capital ratio 0.78 0.65 0.66 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
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
Financial leverage ratio 5.76 3.81 3.95 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

Progress Software Corporation's solvency ratios provide insight into the company's ability to meet its financial obligations.

1. The Debt-to-Assets ratio has shown slight fluctuations but generally indicates that about 30-50% of the company's assets are financed through debt. This ratio has been increasing over the years, reaching 0.50 by May 31, 2024, suggesting a higher reliance on debt to finance its assets.

2. The Debt-to-Capital ratio has also been on the rise, indicating the proportion of the company's capital that is debt-financed. This ratio increased from 0.46 on February 29, 2020, to 0.66 by May 31, 2024, showing a growing reliance on debt to fund the company's operations.

3. The Debt-to-Equity ratio measures the proportion of the company's financing that comes from debt compared to equity. The ratio has shown a significant increase over the years, reaching 3.48 by November 30, 2024, indicating a higher level of debt relative to equity in the company's capital structure.

4. The Financial Leverage ratio, which reflects the company's total debt relative to its equity, has also been increasing. This ratio rose from 2.71 on February 29, 2020, to 5.76 by November 30, 2024, showing a growing level of financial leverage in the company's operations.

Overall, the trend across all solvency ratios suggests that Progress Software Corporation has been increasingly relying on debt to finance its operations and growth, which could potentially pose solvency risks if not managed carefully. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and ability to meet its debt obligations in the long term.

Coverage ratios

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
Interest coverage 6.30 7.47 5.46 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

Progress Software Corporation's interest coverage has shown fluctuations over the past several periods. The ratio, which indicates the company's ability to meet its interest obligations from its operating income, was relatively stable around 5.00 to 7.00 during the period from February 2020 to November 2021.

Beginning from February 2022, the interest coverage ratio started to fluctuate more significantly, ranging from a low of 3.40 in February 2024 to a high of 8.43 in November 2022. This change in trend suggests potential variability in the company's ability to cover its interest payments from operating profits.

Based on the most recent data available for May 2024, the interest coverage ratio increased to 5.46, indicating an improvement compared to the previous quarter. However, it is important to monitor future ratios to assess the company's ongoing ability to cover its interest expenses and manage its debt obligations effectively.