HealthEquity Inc (HQY)

Debt-to-equity ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	874,972	907,838	922,077	924,217	1,181,620
Total stockholders’ equity	US$ in thousands	2,035,020	1,895,640	1,852,580	1,378,730	1,030,300
Debt-to-equity ratio		0.43	0.48	0.50	0.67	1.15

January 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $874,972K ÷ $2,035,020K
= 0.43

The debt-to-equity ratio of HealthEquity Inc has exhibited a decreasing trend over the past five years, indicating a strengthening financial position in terms of debt management. In particular, the ratio has improved from 1.15 in January 2020 to 0.43 in January 2024, reflecting a significant reduction in financial leverage and a lower reliance on debt financing relative to shareholder equity. This decrease suggests that the company has been able to lower its debt levels or increase its equity base, contributing to a more favorable capital structure and lower financial risk. Overall, this trend indicates improved financial health and stability for HealthEquity Inc over the analyzed period.