HealthEquity Inc (HQY)

Debt-to-capital ratio

Jan 31, 2025 Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021
Long-term debt US$ in thousands 1,056,300 874,972 907,838 922,077 924,217
Total stockholders’ equity US$ in thousands 2,114,910 2,035,020 1,895,640 1,852,580 1,378,730
Debt-to-capital ratio 0.33 0.30 0.32 0.33 0.40

January 31, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,056,300K ÷ ($1,056,300K + $2,114,910K)
= 0.33

The debt-to-capital ratio of HealthEquity Inc has seen a declining trend over the past five years. Starting at 0.40 in January 31, 2021, the ratio has gradually decreased to 0.33 in January 31, 2022, further dropping to 0.32 in January 31, 2023, and then to 0.30 in January 31, 2024. There was a slight increase to 0.33 in January 31, 2025.

This decline in the debt-to-capital ratio indicates that HealthEquity Inc has been reducing its dependence on debt to finance its operations and investments relative to its capital structure. A lower debt-to-capital ratio suggests a stronger financial position and lower financial risk for the company. Overall, the trend in the debt-to-capital ratio reflects HealthEquity Inc's efforts to manage its debt levels prudently and maintain a healthy balance between debt and equity in its capital structure.