HealthEquity Inc (HQY)
Debt-to-equity 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-equity ratio | 0.50 | 0.43 | 0.48 | 0.50 | 0.67 |
January 31, 2025 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,056,300K ÷ $2,114,910K
= 0.50
The debt-to-equity ratio of HealthEquity Inc has exhibited a decreasing trend over the past five years, indicating that the company has been reducing its reliance on debt financing in relation to equity.
As of January 31, 2025, the company's debt-to-equity ratio stands at 0.50, which suggests that for every dollar of equity, the company has 50 cents of debt. This indicates a balanced capital structure with a moderate level of debt relative to equity.
The decreasing trend in the debt-to-equity ratio shows that HealthEquity Inc has been effectively managing its debt levels, which may indicate a stronger financial position and lower financial risk. Investors and stakeholders may view a lower debt-to-equity ratio favorably as it signifies a more conservative approach to financing and may indicate better financial health and stability for the company.
Overall, the decreasing debt-to-equity ratio of HealthEquity Inc reflects a prudent financial strategy and may signal a positive outlook for the company's financial performance and sustainability.
Peer comparison
Jan 31, 2025