HealthEquity Inc (HQY)
Cash ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 403,979 | 254,266 | 225,414 | 328,803 | 191,726 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 117,091 | 131,061 | 153,187 | 204,701 | 151,937 |
| Cash ratio | 3.45 | 1.94 | 1.47 | 1.61 | 1.26 |
January 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($403,979K
+ $—K)
÷ $117,091K
= 3.45
The cash ratio of HealthEquity Inc has shown a positive trend over the past five years. The ratio has steadily increased from 1.26 in January 2020 to 3.45 in January 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has improved significantly over the years. A higher cash ratio suggests that the company has a stronger liquidity position and is better positioned to meet its obligations without resorting to external financing. Overall, the increasing trend in HealthEquity Inc's cash ratio reflects a positive liquidity management strategy and financial health.
Peer comparison
Jan 31, 2024