HealthEquity Inc (HQY)

Receivables turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Revenue	US$ in thousands	1,202,300	945,655	815,511	717,771	700,488
Receivables	US$ in thousands	118,006	104,893	96,835	87,428	72,767
Receivables turnover		10.19	9.02	8.42	8.21	9.63

January 31, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,202,300K ÷ $118,006K
= 10.19

HealthEquity Inc's receivables turnover ratio has shown a slight fluctuation over the past five years. In January 2021, the ratio was 9.63, indicating that the company collected its accounts receivable approximately 9.63 times during the year. This ratio decreased to 8.21 in January 2022, suggesting a longer collection period for the company's receivables. However, there was a slight improvement in the ratio in January 2023, reaching 8.42.

Subsequently, HealthEquity Inc's receivables turnover increased to 9.02 in January 2024, indicating a more efficient collection of accounts receivable compared to the previous year. The most recent data for January 2025 shows a significant improvement in the receivables turnover ratio, reaching 10.19. This suggests that the company is collecting its accounts receivable more frequently, which can be a favorable indicator of effective credit management and liquidity.

Overall, HealthEquity Inc's receivables turnover ratio has shown some variability over the past five years, but the trend seems to be towards more efficient collection of accounts receivable, especially evidenced by the notable increase in the ratio in January 2025. This trend indicates that the company may be managing its receivables effectively and improving its liquidity position.