HealthEquity Inc (HQY)

Debt-to-equity 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-equity ratio		0.43	0.44	0.45	0.45	0.48	0.48	0.49	0.50	0.50	0.49	0.48	0.49	0.67	0.69	0.71	1.12	1.15	1.18	0.00	0.00

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 fluctuated over the past two years, indicating changes in its capital structure. From January 2020 to July 2021, the company's debt-to-equity ratio was relatively stable, ranging between 0.43 and 0.50. However, there was a significant increase in the ratio in January 2021 to 0.67, followed by further spikes in April and July 2021 to 0.69 and 0.71, respectively.

These increases suggest that HealthEquity Inc may have taken on more debt relative to its equity during that period. Subsequently, the ratio experienced a sharp jump to over 1.00 in the following periods, indicating that the company's debt levels exceeded its equity, which could potentially raise concerns about its financial leverage and ability to meet its debt obligations.

It's important for stakeholders to closely monitor the trend in the debt-to-equity ratio to assess the company's financial risk and stability, as a high ratio may indicate a higher level of financial risk and potential difficulty in servicing its debt.