HealthEquity Inc (HQY)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	1,030,300	1,017,760	1,017,030	529,299
Debt-to-capital ratio		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	0.53	0.54	0.00	0.00

January 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $874,972K ÷ ($874,972K + $2,035,020K)
= 0.30

The debt-to-capital ratio of HealthEquity Inc has fluctuated over the past several quarters. As of January 31, 2024, the ratio stood at 0.30, indicating that 30% of the company's capital structure was funded by debt. This figure has generally decreased from a peak of 0.54 in July 2019 to the current level.

The trend suggests that HealthEquity has been reducing its reliance on debt to finance its operations and investments. A lower debt-to-capital ratio generally indicates a healthier financial position and less financial risk for the company. It also implies that HealthEquity has been using more equity financing or generating sufficient internal funds to support its activities.

However, it is important to monitor this ratio over time to ensure that the company maintains a balanced capital structure that aligns with its long-term financial objectives and growth strategies. A sustainable and optimal debt-to-capital ratio is crucial for maintaining financial stability and maximizing shareholder value.