HealthEquity Inc (HQY)

HealthEquity Inc's liquidity ratios show a positive trend over the years, indicating strong liquidity positions. The current ratio has increased steadily from 2.25 in January 31, 2021, to 3.06 in January 31, 2025, reflecting the company's ability to cover its short-term obligations with its current assets.

Similarly, the quick ratio has also shown improvement from 1.96 in January 31, 2021, to 2.65 in January 31, 2025, suggesting that HealthEquity Inc has an increasing ability to meet its immediate liabilities using its most liquid assets.

The cash ratio, which measures the company's ability to pay off its current liabilities using only its cash and cash equivalents, has demonstrated an upward trend from 1.61 in January 31, 2021, to 1.89 in January 31, 2025. This indicates that the company has an improving capacity to settle its short-term obligations solely with its available cash resources.

Overall, the liquidity ratios of HealthEquity Inc have been strengthening over the years, reflecting a healthy financial position and the ability to meet its short-term obligations comfortably.

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Additional liquidity measure

The cash conversion cycle of HealthEquity Inc has shown fluctuations over the past five years. As of January 31, 2021, the company took approximately 36.93 days to convert its investments in inventory and other resources into cash. This figure improved to 29.79 days by January 31, 2022, indicating a more efficient management of working capital. However, by January 31, 2023, the cash conversion cycle increased slightly to 36.23 days before decreasing to 34.34 days on January 31, 2024. The most recent data as of January 31, 2025, shows a further improvement to 29.61 days. Overall, HealthEquity Inc has been able to manage its cash conversion cycle effectively, although some fluctuation is observed over the years. This metric is crucial for assessing the company's ability to efficiently convert its resources into cash flow.