HealthStream Inc (HSTM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.42 | 1.47 | 1.49 | 1.44 | 1.50 |
HealthStream Inc has consistently maintained a strong solvency position as indicated by its solvency ratios over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00, suggesting that the company has no long-term debt relative to its total assets, capital structure, or equity during this period. This indicates a low level of financial risk and a healthy balance sheet.
Looking at the financial leverage ratio, we see a decreasing trend from 1.50 in 2020 to 1.42 in 2024. This ratio measures the extent to which the company relies on debt financing compared to equity. The decreasing trend indicates that HealthStream Inc has been reducing its reliance on debt to finance its operations, which can be seen as a positive sign of financial stability and sustainable growth.
Overall, based on these solvency ratios, HealthStream Inc appears to have a strong financial position with minimal debt obligations and decreasing reliance on debt financing, indicating a stable and healthy financial outlook for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 3.97 | 27.87 | 7.89 |
The interest coverage ratio is a measure of a company's ability to meet its interest obligations on outstanding debt. HealthStream Inc's interest coverage ratio has shown fluctuations over the years based on the provided data:
1. As of December 31, 2020, the interest coverage ratio was 7.89, indicating that the company was able to cover its interest payments almost eight times over with its operating income.
2. By December 31, 2021, the interest coverage ratio significantly improved to 27.87, reflecting a strong ability to cover interest expenses with operating income.
3. However, by December 31, 2022, there was a notable decline in the interest coverage ratio to 3.97, indicating a decreased ability to cover interest payments with operating income compared to the previous year.
4. The data for December 31, 2023 and December 31, 2024 is not provided (indicated by "—"), making it difficult to assess the trend beyond 2022.
In conclusion, the interest coverage ratio for HealthStream Inc has shown variability over time, with fluctuations in the company's ability to cover interest expenses with its operating income. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt obligations.