HealthEquity Inc (HQY)

Days of sales outstanding (DSO)

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Receivables turnover		10.19	9.02	8.42	8.21	9.63
DSO	days	35.82	40.49	43.34	44.46	37.92

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.19
= 35.82

Days of Sales Outstanding (DSO) is a key financial metric that indicates how long it takes for a company to collect its accounts receivable. For HealthEquity Inc, the trend in DSO over the past five years is as follows:

- As of January 31, 2021, HealthEquity had a DSO of 37.92 days.
- By January 31, 2022, the DSO had increased to 44.46 days, indicating that it took longer for the company to collect its accounts receivable.
- The DSO decreased slightly to 43.34 days as of January 31, 2023, showing some improvement in the collection efficiency.
- By January 31, 2024, HealthEquity's DSO had decreased further to 40.49 days, suggesting continued efforts to streamline accounts receivable collection.
- As of January 31, 2025, the DSO had decreased significantly to 35.82 days, indicating that the company was able to collect outstanding payments more promptly.

Overall, the trend in HealthEquity Inc's DSO over the five-year period reflects fluctuations in the efficiency of accounts receivable collection. The general downward trend in DSO from 2022 to 2025 indicates improvement in the company's ability to collect receivables efficiently, which is a positive sign for its financial health and working capital management.