Liabilities Breakdown
| Total Current Liabilities | 78.99 Million | |
| Liabilities And Stockholders Equity | 1.62 Billion | |
| Non Current Liabilities Total | 571.44 Million | |
| Non Current Liabilities Other | 18.31 Million |
How much will HealthEquity owe in January?
 | By Gabriel Shpitalnik | Macroaxis Story |
HealthEquity carries $933.14 million in debt, with a debt-to-equity ratio of 0.54, which is reasonable for its industry. The company boasts a current ratio of 2.41, indicating strong liquidity and the ability to meet its financial obligations as they come due. While debt can be a strategic tool for growth, HealthEquity's net profit margin is just 0.1%, suggesting the need for a more competitive strategy. Even a slight dip in revenue could wipe out profits, leading to losses. This margin is significantly below average. Similarly, the net operating margin stands at 0.2%, meaning the company earns just $0.2 in operating income for every $100 of revenue.
Critical Takeaways
Considering HealthEquity's strategic growth potential, leveraging their strong cash position of 404M might provide a robust opportunity for expansion, especially if they choose to increase their capital lease obligations, currently at 58.2M, to fund new initiatives. This move could enhance their market position in the Health Information Services industry, provided the increased debt is managed effectively to avoid undue financial strain.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
When opportunity knocks, companies often consider leveraging debt to fuel growth, and HealthEquity might be gearing up for just that. With cash reserves standing at $404 million and total current liabilities at $117.1 million, the company is in a solid position to contemplate expanding its debt. This strategic move could potentially bolster its market standing in the health information services sector. Despite a cost of revenue of $376.9 million, HealthEquity's operating income of $128.1 million suggests that it is managing its expenses effectively. As it navigates this path, investors will be keen to see if the expected forecast value of $95.36 aligns with analyst target prices, indicating whether the potential debt expansion will indeed drive future growth. HealthEquity is set to release its earnings today. Currently, the company's Days Payables Outstanding remains steady compared to last year. Looking ahead to 2024, the Return on Tangible Assets is expected to increase to 0.13, while Days Sales Outstanding is projected to decrease to 30.22. With growing interest in the healthcare providers and services sector, it's worth considering HealthEquity as a potential investment opportunity.Russell 2000 financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Russell 2000, including all of Russell 2000's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Russell 2000 assets, the company is considered highly leveraged. Understanding the composition and structure of overall Russell 2000 debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Instrument Allocation
The asset allocation of funds such as Russell 2000 usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Russell 2000 2x
DetailsAn Additional Perspective On Russell 2000 2x
HealthEquity reported the last year's revenue of 999.59 M. Total Income to common stockholders was 55.71 M with profit before taxes, overhead, and interest of 490.09 M.
Warren Buffett once said, "The more you learn, the more you earn," and HealthEquity (HQY) seems to be gearing up for a strategic leap forward.With a solid net asset base of $3.16 billion and a manageable debt-to-equity ratio of 0.54%, the company appears well-positioned to consider expanding its debt in January for growth initiatives. Despite its total debt of $933.14 million, HealthEquity's cash flow from operations stands strong at $242.83 million, suggesting it has the financial flexibility to support potential expansion plans. The company's beta of 0.52 indicates lower volatility compared to the broader market, which could appeal to risk-averse investors looking for stability in the Health Information Services sector. As HealthEquity navigates its fiscal strategies, the high institutional ownership of 97.94% reflects strong confidence from major investors, potentially signaling a promising outlook for the stock..
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