HealthEquity Inc (HQY)
Working capital 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 1,203,871 | 1,153,288 | 1,088,356 | 1,018,339 | 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 |
Total current assets | US$ in thousands | 477,749 | 495,246 | 495,627 | 404,902 | 557,436 | 474,408 | 422,557 | 358,409 | 382,893 | 332,160 | 308,586 | 278,923 | 351,337 | 764,131 | 860,614 | 865,111 | 460,177 | 396,030 | 383,127 | 283,783 |
Total current liabilities | US$ in thousands | 156,323 | 154,539 | 120,908 | 92,217 | 117,091 | 96,236 | 103,271 | 89,656 | 131,061 | 110,375 | 125,517 | 117,651 | 153,187 | 107,074 | 185,124 | 192,304 | 204,701 | 151,359 | 153,776 | 134,605 |
Working capital turnover | 3.75 | 3.38 | 2.90 | 3.26 | 2.18 | 2.42 | 2.77 | 3.16 | 3.24 | 3.55 | 4.09 | 4.56 | 3.62 | 1.08 | 1.06 | 1.04 | 2.74 | 2.94 | 3.03 | 4.12 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,203,871K ÷ ($477,749K – $156,323K)
= 3.75
The working capital turnover ratio of HealthEquity Inc has experienced fluctuations over the given period, ranging from a high of 4.56 to a low of 1.04. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue, with higher ratios indicating more efficient utilization.
HealthEquity Inc's working capital turnover ratio peaked at 4.56 on April 30, 2022, showcasing a strong ability to generate revenue relative to its working capital. This was followed by a slight decrease to 4.09 on July 31, 2022, and further to 3.55 on October 31, 2022.
However, the ratio showed a noticeable decline to 3.24 on January 31, 2023, and continued to decrease to 2.42 on October 31, 2023, indicating a potential inefficiency in utilizing working capital to drive revenues during that period.
Subsequently, HealthEquity Inc managed to improve its working capital turnover ratio to 3.38 on October 31, 2024, suggesting a better efficiency in generating revenue in relation to its working capital. The ratio further increased to 3.75 on January 31, 2025, indicating continued improvement in this aspect.
Overall, the fluctuations in HealthEquity Inc's working capital turnover ratio suggest varying degrees of efficiency in utilizing working capital to generate revenue over the analyzed period. It is essential for the company to monitor and manage its working capital effectively to maintain a healthy balance between liquidity and operational performance.
Peer comparison
Jan 31, 2025