HealthStream Inc (HSTM)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	510,766	502,831	499,555	511,605	499,942	498,050	493,474	503,159	497,741	481,197	477,704	483,926	486,753	494,714	496,302	501,682	500,313	476,557	477,825	481,511
Total stockholders’ equity	US$ in thousands	359,355	355,481	349,214	344,854	340,752	342,246	340,619	336,039	334,064	330,282	326,732	322,572	339,019	342,198	340,379	336,805	334,062	336,265	339,424	335,416
Financial leverage ratio		1.42	1.41	1.43	1.48	1.47	1.46	1.45	1.50	1.49	1.46	1.46	1.50	1.44	1.45	1.46	1.49	1.50	1.42	1.41	1.44

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $510,766K ÷ $359,355K
= 1.42

HealthStream Inc's financial leverage ratio has fluctuated between 1.41 and 1.50 over the past few years. This ratio indicates the company's level of debt relative to its equity. A financial leverage ratio of 1.50, for example, means that the company has $1.50 in debt for every $1 of equity.

The trend in the financial leverage ratio shows some variability but generally remains relatively stable around the 1.44 to 1.50 range. A higher financial leverage ratio suggests that the company relies more on debt financing, which can amplify returns during good times but also increase financial risk during economic downturns.

Overall, HealthStream Inc's financial leverage ratio appears to be within a reasonable range, but it is important for the company to carefully manage its debt levels to ensure financial stability and flexibility in the future.