HealthStream Inc (HSTM)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	340,752	334,064	339,019	334,062	338,168
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $340,752K)
= 0.00

Based on the data provided, Healthstream Inc has consistently reported a debt-to-capital ratio of 0.00 over the past five years, from 2019 to 2023. This indicates that the company has not utilized any debt in its capital structure during this period. A debt-to-capital ratio of 0.00 means that the company's total debt is zero compared to its total capital (the sum of debt and equity), suggesting that Healthstream Inc has been relying solely on equity financing to fund its operations and investments.

This low debt-to-capital ratio signifies that the company may have a strong financial position with minimal financial risk associated with debt obligations. Healthstream Inc's ability to operate without debt could provide it with greater financial flexibility, lower interest expenses, and reduce the risk of financial distress in times of economic uncertainty. However, it is important to note that while a low debt-to-capital ratio can be advantageous, excessive reliance on equity funding may also limit the company's growth opportunities or hinder its ability to take advantage of tax benefits associated with debt financing.

Overall, the consistent debt-to-capital ratio of 0.00 for Healthstream Inc suggests a conservative financial approach focused on maintaining a strong balance sheet and minimizing financial leverage.