HealthEquity Inc (HQY)
Financial leverage ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,163,790 | 3,088,900 | 3,107,100 | 2,710,410 | 2,564,980 |
| Total stockholders’ equity | US$ in thousands | 2,035,020 | 1,895,640 | 1,852,580 | 1,378,730 | 1,030,300 |
| Financial leverage ratio | 1.55 | 1.63 | 1.68 | 1.97 | 2.49 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,163,790K ÷ $2,035,020K
= 1.55
The financial leverage ratio of HealthEquity Inc has been decreasing over the past five years, indicating a trend towards lower financial leverage. This means that the company has been relying less on debt to finance its operations and growth, which can be considered a positive sign of financial stability and risk management. A decreasing financial leverage ratio suggests that the company is becoming less reliant on debt to generate profit and fund its activities. It also indicates that the company has been improving its ability to meet its financial obligations using its own equity rather than borrowed funds. Overall, the declining trend in the financial leverage ratio of HealthEquity Inc reflects a conservative approach to capital structure and financial risk management.
Peer comparison
Jan 31, 2024