HealthEquity Inc (HQY)
Cash conversion cycle
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 40.49 | 43.34 | 44.46 | 37.92 | 50.92 |
| Number of days of payables | days | 6.15 | 7.11 | 14.67 | 0.98 | 3.38 |
| Cash conversion cycle | days | 34.34 | 36.23 | 29.79 | 36.93 | 47.54 |
January 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 40.49 – 6.15
= 34.34
The cash conversion cycle of HealthEquity Inc has shown variations over the past five years. In the most recent fiscal year ending January 31, 2024, the company's cash conversion cycle was 34.34 days, a slight improvement compared to the previous year. This indicates that the company is managing its cash flow more efficiently, as it takes less time to convert invested resources into cash.
In comparison to the data from the fiscal years 2023 and 2021, where the cash conversion cycle was 36.23 days and 36.93 days respectively, HealthEquity Inc has shown progress in optimizing its working capital and operational efficiency. The fiscal year 2022 saw the company with the lowest cash conversion cycle of 29.79 days, indicating a swift turnaround of cash from operations.
On the other hand, the fiscal year 2020 reported the highest cash conversion cycle of 47.54 days, highlighting a potential inefficiency in managing cash inflows and outflows within the business operations. Overall, the trend in the cash conversion cycle demonstrates HealthEquity Inc's efforts towards streamlining its cash management processes and improving its overall financial performance over the years.
Peer comparison
Jan 31, 2024