HealthStream Inc (HSTM)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	489,544	480,197	476,451	483,500
Total stockholders’ equity	US$ in thousands	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	338,168	333,893	329,671	325,141
Financial leverage ratio		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	1.45	1.44	1.45	1.49

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 been relatively stable over the last eight quarters, ranging from 1.45 to 1.50. This ratio indicates that the company's capital structure is primarily financed through debt rather than equity. A financial leverage ratio of more than 1 suggests that the company relies more on debt to finance its operations.

Although the ratio has shown some fluctuations, the overall trend indicates that Healthstream Inc has maintained a consistent level of leverage in its capital structure. It is important for investors and stakeholders to consider the implications of a higher financial leverage ratio, as it signifies higher financial risk due to the increased reliance on debt financing. Further analysis of the company's ability to manage its debt obligations and generate sufficient cash flow to service its debts would provide a comprehensive understanding of its financial health.