HealthEquity Inc (HQY)

Days of sales outstanding (DSO)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Receivables turnover		10.20	10.81	10.04	9.59	9.14	9.53	9.55	8.62	8.42	8.99	8.28	8.55	8.21	8.40	9.63	9.40	9.63	11.20	9.88	8.81
DSO	days	35.78	33.77	36.37	38.07	39.95	38.32	38.22	42.34	43.34	40.61	44.10	42.68	44.46	43.43	37.89	38.82	37.92	32.60	36.93	41.42

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.20
= 35.78

Days Sales Outstanding (DSO) is a key financial metric that measures how long it takes for a company to collect payment after making a sale. In the case of HealthEquity Inc, the DSO has shown some fluctuations over the periods analyzed.

From April 30, 2020, to July 31, 2021, the DSO exhibited a decreasing trend, indicating that HealthEquity was becoming more efficient in collecting its accounts receivable. However, in the subsequent periods up to July 31, 2024, there were fluctuations in the DSO, with some periods showing slight increases and decreases.

For instance, the DSO increased from October 31, 2021, to January 31, 2022, before decreasing slightly in the following period. This fluctuation continued until October 31, 2024, where a more significant decline was observed.

Overall, HealthEquity Inc's DSO has shown some variability over the periods analyzed, suggesting changes in the company's collection efficiency. It is important for management to monitor DSO closely to ensure efficient management of accounts receivable and cash flow.