HealthEquity Inc (HQY)

Debt-to-assets ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Long-term debt	US$ in thousands	874,972	874,270	873,581	872,902	907,838	911,406	914,966	918,514	922,077	923,501	895,449	909,820	924,217	938,558	952,898	1,167,190	1,181,620	1,196,020	—	—
Total assets	US$ in thousands	3,163,790	3,093,500	3,066,460	3,035,010	3,088,900	3,064,760	3,074,020	3,065,070	3,107,100	3,099,610	3,148,630	3,161,870	2,710,410	2,657,260	2,664,380	2,562,480	2,564,980	2,559,920	1,098,340	596,639
Debt-to-assets ratio		0.28	0.28	0.28	0.29	0.29	0.30	0.30	0.30	0.30	0.30	0.28	0.29	0.34	0.35	0.36	0.46	0.46	0.47	0.00	0.00

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 remained relatively stable over the past two years, hovering around the range of 0.28 to 0.30. This indicates that the company has been able to efficiently manage its debt levels relative to its total assets during this period. However, there was a slight increase in the ratio in the most recent period, reaching 0.30, compared to the previous reading of 0.29. It is essential for investors to monitor any significant fluctuations in this ratio as higher levels may signal increased financial risk for the company. It is noteworthy that there were two periods, in January and April 2021, where the debt-to-assets ratio spiked significantly to 0.34 and 0.36, respectively, which could have been due to specific financing activities or acquisitions during those times. The debt-to-assets ratio provides insight into the company's capital structure and risk profile, and maintaining a stable ratio within a reasonable range is generally considered favorable for the company's financial health.