HealthEquity Inc (HQY)

Debt-to-capital ratio

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 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
Long-term debt US$ in thousands 1,056,300 1,081,040 1,101,400 925,675 874,972 874,270 873,581 872,902 907,838 911,406 914,966 918,514 922,077 923,501 895,449 909,820 924,217 938,558 952,898 1,167,190
Total stockholders’ equity US$ in thousands 2,114,910 2,124,690 2,157,040 2,097,780 2,035,020 1,987,970 1,949,610 1,918,590 1,895,640 1,883,120 1,864,900 1,855,260 1,852,580 1,871,850 1,862,670 1,848,270 1,378,730 1,355,260 1,340,340 1,040,650
Debt-to-capital ratio 0.33 0.34 0.34 0.31 0.30 0.31 0.31 0.31 0.32 0.33 0.33 0.33 0.33 0.33 0.32 0.33 0.40 0.41 0.42 0.53

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

HealthEquity Inc's debt-to-capital ratio has shown a declining trend over the past few years, starting at 0.53 in April 2020 and decreasing to 0.33 by January 2025. This indicates that the company has been able to better manage its debt relative to its total capitalization. A lower debt-to-capital ratio suggests that the company has a lower reliance on debt financing compared to equity, which can be seen as a positive sign of financial strength and stability. The decreasing trend in the ratio over time may imply stronger financial health and a reduced risk of financial distress for HealthEquity Inc.