HealthEquity Inc (HQY)

Days of sales outstanding (DSO)

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Receivables turnover		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	7.41	6.00	11.81	11.31
DSO	days	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	49.26	60.86	30.91	32.27

January 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.14
= 39.95

HealthEquity Inc's days of sales outstanding (DSO) has shown some fluctuations over the past few quarters. The DSO indicates the average number of days it takes for the company to collect payment after making a sale.

From Jan 2020 to Jan 2024, the DSO ranged from a low of 30.91 days to a high of 60.86 days. A lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign of efficient accounts receivable management.

In recent quarters, the DSO has been relatively stable, hovering around the high 30s to low 40s. This stability could suggest that HealthEquity is effectively managing its accounts receivable and maintaining a consistent collection process.

However, the increase in DSO from 37.89 days in Jul 2021 to 43.43 days in Jan 2022 may raise some concerns as it suggests a potential delay in collecting payments during that period.

Overall, while HealthEquity Inc's DSO has shown some fluctuations, the recent stability in the range of high 30s to low 40s is a positive sign of effective accounts receivable management. Monitoring this ratio going forward will be important to ensure efficient cash flow management.