HealthStream Inc (HSTM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 510,766 | 499,942 | 497,741 | 486,753 | 500,313 |
| Total stockholders’ equity | US$ in thousands | 359,355 | 340,752 | 334,064 | 339,019 | 334,062 |
| Financial leverage ratio | 1.42 | 1.47 | 1.49 | 1.44 | 1.50 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $510,766K ÷ $359,355K
= 1.42
The financial leverage ratio of HealthStream Inc has shown a relatively stable trend over the years, ranging from 1.42 to 1.50. This ratio indicates the extent to which the company relies on debt financing to fund its operations and growth. A lower financial leverage ratio suggests a lower level of financial risk and dependence on debt, which can be viewed favorably by stakeholders. HealthStream Inc's financial leverage ratio has slightly decreased from 1.50 in 2020 to 1.42 in 2024, showing potential improvement in the company's debt management and financial stability. However, it is important to assess the overall financial health of the company in conjunction with other financial ratios and metrics for a comprehensive analysis.
Peer comparison
Dec 31, 2024