HealthEquity Inc (HQY)

Debt-to-assets ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	874,972	907,838	922,077	924,217	1,181,620
Total assets	US$ in thousands	3,163,790	3,088,900	3,107,100	2,710,410	2,564,980
Debt-to-assets ratio		0.28	0.29	0.30	0.34	0.46

January 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $874,972K ÷ $3,163,790K
= 0.28

The debt-to-assets ratio of HealthEquity Inc has exhibited a decreasing trend over the past five years, moving from 0.46 in January 2020 to 0.28 in January 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower debt-to-assets ratio typically signifies a healthier financial position, as it suggests that a smaller portion of the company's assets is funded by debt. It indicates that HealthEquity Inc has a relatively stronger ability to cover its liabilities with its assets, which can be perceived positively by investors and creditors. Nonetheless, it is essential to consider the industry norms and the company's specific circumstances to fully evaluate the implications of this ratio on HealthEquity Inc's financial health and risk profile.