HealthEquity Inc (HQY)

Financial leverage 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
Total assets	US$ in thousands	3,163,790	3,093,500	3,066,460	3,035,010	3,088,900	3,064,760	3,074,020	3,065,070	3,107,100	3,099,610	3,148,630	3,161,870	2,710,410	2,657,260	2,664,380	2,562,480	2,564,980	2,559,920	1,098,340	596,639
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
Financial leverage ratio		1.55	1.56	1.57	1.58	1.63	1.63	1.65	1.65	1.68	1.66	1.69	1.71	1.97	1.96	1.99	2.46	2.49	2.52	1.08	1.13

January 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,163,790K ÷ $2,035,020K
= 1.55

HealthEquity Inc's financial leverage ratio has shown a moderate upward trend over the past several quarters, increasing from 1.08 in October 2019 to 2.52 in April 2019, before decreasing to 1.13 in July 2019. The ratio then fluctuated between 1.55 and 1.71 over the next two years.

A financial leverage ratio above 1 indicates that the company relies more on debt than equity to finance its operations. HealthEquity's increasing ratio suggests a higher reliance on debt financing, which can lead to increased financial risk due to higher debt obligations and interest payments.

It is important for investors to monitor HealthEquity's financial leverage ratio closely to assess the company's ability to manage its debt levels and maintain a healthy balance between debt and equity in its capital structure.