HealthEquity Inc (HQY)

Cash conversion cycle

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	39.95	38.32	38.22	42.34	43.34	40.61	44.10	42.68	44.46	43.43	37.89	38.82	37.92	32.60	36.93	41.42	49.26	60.86	30.91	32.27
Number of days of payables	days	6.94	6.84	6.39	6.82	7.11	7.76	8.04	7.05	14.67	3.00	2.72	5.77	0.98	4.72	7.95	5.89	4.06	9.63	5.33	4.18
Cash conversion cycle	days	33.01	31.48	31.83	35.51	36.23	32.85	36.06	35.62	29.78	40.43	35.17	33.04	36.93	27.88	28.98	35.53	45.20	51.23	25.58	28.09

January 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 39.95 – 6.94
= 33.01

The cash conversion cycle of HealthEquity Inc has shown some fluctuations over the past few periods. A lower number of days indicates a shorter time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.

From Jan 31, 2024, to Oct 31, 2023, the cash conversion cycle increased slightly from 31.48 days to 33.01 days, indicating a longer time to convert investments into cash. This trend continued from Jul 31, 2023, to Apr 30, 2023, with the cycle increasing to 35.51 days. However, it then decreased to 36.23 days by Jan 31, 2023.

The trend reversed from Jan 31, 2023, to Oct 31, 2022, as the cycle decreased to 32.85 days. It increased again by Jul 31, 2022, jumping to 36.06 days, but then decreased to 35.62 days by Apr 30, 2022. The cycle significantly improved by Jan 31, 2022, dropping to a low of 29.78 days.

The trend reversed once more from Jan 31, 2022, to Jul 31, 2021, with the cycle increasing to 40.43 days before decreasing to 35.17 days by Apr 30, 2021. The cycle then increased steadily to 36.93 days by Jan 31, 2021, but significantly improved to 27.88 days by Oct 31, 2020.

From Oct 31, 2020, to Jul 31, 2019, there was some fluctuation in the cash conversion cycle, with highs and lows ranging from 28.09 days to 51.23 days. Overall, HealthEquity Inc's cash conversion cycle has shown variability over the periods analyzed, implying fluctuations in the efficiency of the company's management of working capital and cash flow.