HealthEquity Inc (HQY)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	958,410	916,132	884,134	848,438	815,511	788,427	748,466	735,565	717,815	706,638	714,959	700,254	700,489	719,841	694,134	614,980	525,114	399,691	323,044	305,671
Receivables	US$ in thousands	104,893	96,181	92,581	98,414	96,835	87,716	90,426	86,003	87,428	84,083	74,223	74,468	72,767	64,291	70,235	69,789	70,863	66,647	27,357	27,022
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

January 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $958,410K ÷ $104,893K
= 9.14

Over the past several quarters, HealthEquity Inc's receivables turnover ratio has fluctuated within a range of 6.00 to 11.81 times. The company's ability to collect on its receivables improved in the most recent quarter ending January 31, 2024, with a turnover ratio of 9.14 times. This indicates that, on average, the company collects its outstanding receivables approximately 9.14 times a year, suggesting efficient management of receivables and potentially prompt collection from customers.

While the receivables turnover ratio has shown variability, it generally remained above 8 times, indicating a consistent trend of effective receivables management. However, there was a noticeable decline in the ratio in the quarter ending January 31, 2020, at 6.00 times, which may have been a temporary dip or reflective of specific circumstances during that period.

Overall, the trend in the receivables turnover ratio suggests that HealthEquity Inc has been effectively managing its accounts receivable, maintaining a relatively healthy turnover rate. Further analysis and comparison with industry benchmarks could provide additional insights into the company's efficiency in collecting receivables.