HealthEquity Inc (HQY)

Working capital 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 current assets	US$ in thousands	557,436	382,893	351,337	460,177	297,300
Total current liabilities	US$ in thousands	117,091	131,061	153,187	204,701	151,937
Working capital turnover		2.15	3.24	3.62	2.74	3.49

January 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $945,655K ÷ ($557,436K – $117,091K)
= 2.15

HealthEquity Inc's working capital turnover has shown some fluctuations over the past five years. The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.

In this case, the working capital turnover ratio has varied over the years, ranging from a low of 2.15 in 2024 to a high of 3.62 in 2022. This indicates that in 2022, HealthEquity Inc was able to generate $3.62 in revenue for every dollar of working capital invested, reflecting strong efficiency in utilizing its working capital. However, the ratio declined in 2023 and 2024, suggesting a decrease in the company's ability to generate revenue relative to its working capital investment.

Overall, HealthEquity Inc's working capital turnover has shown some variability, which may be influenced by changes in the company's operating cycle, management of inventory, accounts receivable, and accounts payable. Further analysis of the underlying factors driving these fluctuations is necessary to fully understand the efficiency of the company's working capital management.