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HealthEquity's depreciation, depletion and amortization for the three months ended in Jan. 2024 was $37.9 Mil. Its depreciation, depletion and amortization for the trailing twelve months (TTM) ended in Jan. 2024 was $153.1 Mil.
The historical data trend for HealthEquity's Depreciation, Depletion and Amortization can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HealthEquity Annual Data | |||||||||||||||||||||
Trend | Jan15 | Jan16 | Jan17 | Jan18 | Jan19 | Jan20 | Jan21 | Jan22 | Jan23 | Jan24 | |||||||||||
Depreciation, Depletion and Amortization | Get a 7-Day Free Trial | 55.35 | 115.90 | 137.19 | 161.20 | 153.08 |
HealthEquity Quarterly Data | ||||||||||||||||||||
Apr19 | Jul19 | Oct19 | Jan20 | Apr20 | Jul20 | Oct20 | Jan21 | Apr21 | Jul21 | Oct21 | Jan22 | Apr22 | Jul22 | Oct22 | Jan23 | Apr23 | Jul23 | Oct23 | Jan24 | |
Depreciation, Depletion and Amortization | Get a 7-Day Free Trial | 40.48 | 39.04 | 38.35 | 37.78 | 37.91 |
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $153.1 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HealthEquity (NAS:HQY) Depreciation, Depletion and Amortization Explanation
One of the key tenets of Generally Accepted Accounting Principles (GAAP) is the matching principle. The matching principle states that companies should report associated costs and benefits at the same time.
For example:
If a company buys a $300 million cruise ship in 1982 and then sells tickets to passengers for the next 30 years, the company should not report a $300 million expense in 1982 and then ticket sales for 1982 through 2012. Instead, the company should spread the purchase price of the ship (the cost) over the same time period it sells tickets (the benefit).To create income statements that meet the matching principle, accountants use an expense called depreciation.
So, instead of reporting a $300 million purchase expense in 1982, the company might:
Report a $30 million depreciation expense in 1982, 1983, 1984...and every year after that for the 30 years the company expects to sell tickets to passengers on this cruise ship.To calculate depreciation, a company must make estimates and choices such as:
The cost of the assetThe range of different ways of spreading the cost under GAAP accounting is too long to list. However, public companies in the United States explain their depreciation choices to shareholders in a note to their financial statements. It is critical that investors read this note. Investors can find this note in the company's 10-K.
Past depreciation expenses accumulate on the balance sheet. Most public companies choose not to show this contra asset account on the balance sheet they present to shareholders. Instead, they simply show a single item. This single asset item may be marked Net. Such as Property, Plant, and Equipment - Net. It is actually the asset account netted against the contra asset account.
A contra asset account is an account that offsets an asset account. So, for example a company might have:
Property, Plant, and Equipment - Gross: $150 millionIn this case, the only item likely to be shown on the balance sheet is Property, Plant, and Equipment - Net. This is the cost of the company's property, plant, and equipment (asset account) minus the accumulated depreciation (the contra asset account). It means the company's assets cost $150 million, the company has reported $120 million in depreciation expense over the years, and the company is now reporting the assets have a book value of $30 million.
It is possible for a company to have fully depreciated assets on its balance sheet. This means the company's estimate of the useful life of the asset was shorter than the asset's actual useful life. As a result, the asset - although it is still being used - is carried on the balance sheet at its salvage value.
This is a reminder that depreciation involves estimates and choices. It is not an infallible process.
Companies do not have cash layout for depreciation. Therefore, depreciation is added back in the cash flow statement.
Although depreciation is not a cash cost, it is a real business cost because the company has to pay for the fixed assets when it purchases them. Both Warren Buffett and Charlie Munger hate the idea of EDITDA because depreciation is not included as an expense. Warren Buffett even jokingly said We prefer earnings before everything when criticizing the abuse of EDITDA.
Be Aware
Depreciation estimates make the calculation of net income susceptible to management's accounting choices. These choices can be either overly aggressive or overly conservative.
Thank you for viewing the detailed overview of HealthEquity's Depreciation, Depletion and Amortization provided by GuruFocus.com. Please click on the following links to see related term pages.
Delano Ladd | officer: Executive VP, GC & Corp. Secy. | 15W. SCENIC POINTE DR., SUITE 100, DRAPER UT 84020 |
Ian Sacks | director | TOWERBROOK CAP., PARK AVENUE TOWER, 65 E 55TH ST., 27TH FLOOR, NEW YORK NY 10022 |
Elimelech Rosner | officer: EVP, Chief Technology Officer | 5196 BELMORE COURT, SUWANEE GA 30024 |
Stephen Neeleman | director, officer: Founder and Vice Chairman | 15 W. SCENIC POINTE DR., STE. 100, DRAPER UT 84020 |
Tyson D. Murdock | officer: EVP & CFO | 2275 S. 2200 E., SALT LAKE CITY UT 84109 |
Jon Kessler | director, officer: President and CEO | 15 W. SCENIC POINTE DR., STE. 100, DRAPER UT 84020 |
Frank Corvino | director | GREENWICH HOSPITAL, 5 PERRYRIDGE ROAD, GREENWICH CT 06830 |
Larry L Trittschuh | officer: EVP Chief Security Officer | 1051 RUNNYMEDE ROAD, OAKWOOD OH 45419 |
James M Lucania | officer: EVP & CFO | 101 WOLF DRIVE, THOROFARE NJ 08086 |
Gayle Furgurson Wellborn | director | 123 TORRENCE CHAPEL ROAD, MOORESVILLE NC 28117 |
Debra Charlotte Mccowan | director | 1436 CABRILLO AVENUE, BURLINGAME CA 94010 |
Paul Black | director | 400 WOOD ROAD, BRAINTREE MA 02184 |
Edward Bloomberg | officer: Chief Operating Officer | 13207 WINDSOR STREET, LEAWOOD KS 66209 |
Rajesh Natarajan | director | 7500 DALLAS PARKWAY, SUITE 700, PLANO TX 75024 |
Evelyn S Dilsaver | director | C/O LONGS DRUG STORES CORPORATION, 141 NORTH CIVIC DRIVE, WALNUT CREEK CA 94596 |
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