HealthEquity Inc (HQY)

Solvency ratios

	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
Debt-to-assets ratio	0.28	0.28	0.28	0.29	0.29	0.30	0.30	0.30	0.30	0.30	0.28	0.29	0.34	0.35	0.36	0.46	0.46	0.47	0.00	0.00
Debt-to-capital ratio	0.30	0.31	0.31	0.31	0.32	0.33	0.33	0.33	0.33	0.33	0.32	0.33	0.40	0.41	0.42	0.53	0.53	0.54	0.00	0.00
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
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

HealthEquity Inc's solvency ratios have exhibited relatively stable trends over the past few quarters. The debt-to-assets ratio has hovered around 0.28 to 0.30, indicating that approximately 28% to 30% of the company's assets are financed by debt.

Similarly, the debt-to-capital ratio has ranged from 0.30 to 0.33, showing that debt comprises around 30% to 33% of the company's capital structure. The debt-to-equity ratio has followed a slightly higher trajectory, varying between 0.43 to 0.50, suggesting that debt accounts for approximately 43% to 50% of the company's equity.

The financial leverage ratio has shown a consistent increase over time, with values escalating from 1.55 to 2.52. This indicates a rise in the proportion of debt within the company's capital structure and a higher level of financial risk.

Overall, these solvency ratios suggest that HealthEquity Inc maintains a moderate level of debt relative to its assets and capital, but the increasing financial leverage ratio signals a growing reliance on debt financing, which may warrant closer monitoring of the company's solvency position.

Coverage ratios

	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
Interest coverage	2.35	1.81	1.33	0.81	0.21	-0.82	-0.90	-0.95	-0.82	0.25	0.60	0.86	1.12	1.11	0.33	0.84	2.74	6.77	413.14	401.61

HealthEquity Inc's interest coverage has fluctuated over the past few quarters, with the ratio being below 1 for several periods. This indicates that the company may have had difficulty in covering its interest expenses with its earnings during those quarters. The interest coverage improved significantly in the most recent quarter, reaching 2.35, which suggests that the company's earnings are more than sufficient to cover its interest payments. Overall, the trend in interest coverage shows variability, with occasional periods of low coverage followed by improvements. It is important for investors and creditors to monitor this metric closely to assess the company's ability to meet its debt obligations in the future.