HealthEquity Inc (HQY)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	843,849	726,605	670,138	653,576	633,137	716,307	716,519	714,783	713,683	745,181	719,389	706,905	685,117	637,099	630,456	609,252	599,601	521,403	537,391	454,855
Payables	US$ in thousands	14,361	10,352	10,562	18,167	12,041	13,419	12,543	13,362	13,899	15,842	15,841	13,661	27,541	5,244	4,696	9,636	1,614	6,746	11,708	7,338
Payables turnover		58.76	70.19	63.45	35.98	52.58	53.38	57.13	53.49	51.35	47.04	45.41	51.75	24.88	121.49	134.25	63.23	371.50	77.29	45.90	61.99

January 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $843,849K ÷ $14,361K
= 58.76

HealthEquity Inc's payables turnover has been fluctuating over the years based on the provided data. The payables turnover ratio indicates how efficiently a company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a period.

Looking at the data, we observe that the payables turnover ratio for HealthEquity Inc ranged from a low of 24.88 on January 31, 2022, to a high of 371.50 on January 31, 2021. This significant variance in the ratio suggests fluctuations in the company's payment practices and relationship with its suppliers.

Despite some fluctuations, the company generally maintained a moderate payables turnover ratio, with values ranging from around 35 to 134 in most periods. This indicates that HealthEquity Inc has been able to effectively manage its accounts payable over the years, albeit with some variations in efficiency.

It is important for the company to closely monitor its payables turnover ratio to ensure that it remains at an optimal level, balancing the need to maintain good relationships with suppliers while also managing cash flow effectively. Analyzing trends in this ratio over time can provide insights into the company's financial health and operational efficiency.