HealthEquity Inc (HQY)
Total asset turnover
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 945,655 | 815,511 | 717,771 | 700,488 | 507,971 |
| Total assets | US$ in thousands | 3,163,790 | 3,088,900 | 3,107,100 | 2,710,410 | 2,564,980 |
| Total asset turnover | 0.30 | 0.26 | 0.23 | 0.26 | 0.20 |
January 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $945,655K ÷ $3,163,790K
= 0.30
HealthEquity Inc's total asset turnover has been showing a generally increasing trend over the past five years. The total asset turnover ratio measures a company's ability to generate sales revenue from its assets. The ratio increased from 0.20 in 2020 to 0.30 in 2024, indicating that the company has become more efficient in generating sales from its total assets.
A total asset turnover ratio of 0.30 in 2024 suggests that for every dollar of total assets, the company generates $0.30 in sales revenue. This improvement indicates that the company is utilizing its assets more effectively to generate revenue.
The increasing trend in the total asset turnover ratio over the years is a positive sign for investors and stakeholders, as it indicates that HealthEquity Inc is improving its operational efficiency and effectively managing its asset base to drive revenue growth. The company's efforts to optimize its asset utilization are reflected in the improving total asset turnover ratios in recent years.
Peer comparison
Jan 31, 2024