HealthStream Inc (HSTM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 499,942 | 497,741 | 486,753 | 500,313 | 489,544 |
| Total stockholders’ equity | US$ in thousands | 340,752 | 334,064 | 339,019 | 334,062 | 338,168 |
| Financial leverage ratio | 1.47 | 1.49 | 1.44 | 1.50 | 1.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $499,942K ÷ $340,752K
= 1.47
The financial leverage ratio of Healthstream Inc has fluctuated over the past five years, ranging from 1.44 to 1.50. The ratio indicates the proportion of the company's assets that are financed by debt as opposed to equity. A higher ratio implies a higher level of financial risk due to a larger reliance on debt financing.
Healthstream Inc's financial leverage ratio decreased in 2021 compared to 2020, suggesting a shift towards a more conservative capital structure. However, in 2022 and 2023, the ratio increased slightly, indicating a higher level of leverage and potentially increased financial risk.
Overall, the company's financial leverage ratio has remained relatively stable within a narrow range, indicating that Healthstream Inc has maintained a consistent balance between debt and equity financing over the past five years. Investors and stakeholders may monitor changes in this ratio to assess the company's risk profile and financial stability.
Peer comparison
Dec 31, 2023