HealthEquity Inc (HQY)

Solvency ratios

	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Debt-to-assets ratio	0.31	0.31	0.31	0.29	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
Debt-to-capital ratio	0.33	0.34	0.34	0.31	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
Debt-to-equity ratio	0.50	0.51	0.51	0.44	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
Financial leverage ratio	1.63	1.64	1.63	1.55	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

HealthEquity Inc's solvency ratios indicate a positive trend in its ability to meet its financial obligations.

- The Debt-to-Assets ratio has been decreasing steadily over the years, from 0.46 in April 2020 to 0.31 in January 2025. This suggests that the company is relying less on debt to finance its assets, which is a positive sign of financial health.

- The Debt-to-Capital ratio has also shown a decreasing trend, from 0.53 in April 2020 to 0.33 in January 2025. This ratio indicates the proportion of a company's capital that is financed through debt, and the downward trend reflects a lower reliance on debt financing.

- The Debt-to-Equity ratio has followed a similar decreasing pattern, from 1.12 in April 2020 to 0.50 in January 2025. A lower Debt-to-Equity ratio indicates that the company is less reliant on debt and has a stronger equity base to support its operations.

- The Financial Leverage ratio has also shown a decreasing trend, from 2.46 in April 2020 to 1.63 in January 2025. This ratio measures the company's financial leverage and indicates a similar trend of decreasing reliance on debt financing.

Overall, the decreasing trend in these solvency ratios reflects HealthEquity Inc's improving financial position and ability to meet its financial obligations in the long term.

Coverage ratios

	Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Interest coverage	2.73	2.83	3.34	2.88	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

HealthEquity Inc's interest coverage ratio indicates the company's ability to meet its interest obligations. Looking at the trend over the past few years, we see fluctuations in the interest coverage ratio. The ratio was below 1 for several periods, indicating that the company did not earn enough operating income to cover its interest expenses during those times.

Specifically, from January 31, 2022, to October 31, 2023, the interest coverage ratio was negative, signaling significant financial distress as the company's operating income was insufficient to cover its interest payments. This period may have highlighted liquidity challenges or financial instability within the company.

However, from January 31, 2024, onwards, the interest coverage ratio improved significantly, surpassing 1 and continuing to increase over subsequent periods. This positive trend indicates that HealthEquity Inc's operating income has been sufficient to cover its interest expenses, suggesting a stronger financial position and improved ability to meet debt obligations.

In conclusion, HealthEquity Inc's interest coverage ratio has shown fluctuations in the past, with periods of financial distress followed by improvements in covering interest expenses. The recent trend of increasing interest coverage ratios is a positive sign of the company's improved financial health and ability to manage its debt obligations effectively.