HealthEquity Inc (HQY)
Days of sales outstanding (DSO)
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 9.02 | 8.42 | 8.21 | 9.63 | 7.17 | |
| DSO | days | 40.49 | 43.34 | 44.46 | 37.92 | 50.92 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.02
= 40.49
HealthEquity Inc's Days Sales Outstanding (DSO) has shown a fluctuating trend over the past five years. DSO was 40.49 days as of Jan 31, 2024, a decrease from 43.34 days in the previous year. This implies that the company took, on average, around 40.49 days to collect its accounts receivable in the most recent fiscal year.
Comparing to earlier years, DSO was also lower in 2024 than in 2022 and 2020, indicating an improvement in the company's ability to collect receivables efficiently. In contrast, 2021 saw a lower DSO compared to 2024, signifying a slower collection of receivables in that year.
Overall, although the DSO has varied over the years, the recent decrease is a positive indicator of HealthEquity Inc's ability to manage its receivables effectively and convert them into cash. It would be essential to continue monitoring this metric to ensure a stable and efficient cash flow management strategy.
Peer comparison
Jan 31, 2024