HealthEquity Inc (HQY)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 295,948 | 322,163 | 326,893 | 251,229 | 403,979 | 334,061 | 290,345 | 225,642 | 254,266 | 210,197 | 176,886 | 161,247 | 225,414 | 649,129 | 753,754 | 736,773 | 328,803 | 299,356 | 268,910 | 171,093 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 1.89 | 2.08 | 2.70 | 2.72 | 3.45 | 3.47 | 2.81 | 2.52 | 1.94 | 1.90 | 1.41 | 1.37 | 1.47 | 6.06 | 4.07 | 3.83 | 1.61 | 1.98 | 1.75 | 1.27 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($295,948K
+ $—K)
÷ $156,323K
= 1.89
HealthEquity Inc's cash ratio has shown some fluctuations over the past few years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
Looking at the trend in the data provided, we can observe that the cash ratio increased steadily from April 2021 to October 2021, indicating an improvement in HealthEquity's liquidity position during this period. The cash ratio reached its peak of 6.06 as of October 31, 2021, suggesting that the company had a substantial amount of cash on hand relative to its current liabilities.
However, from January 2022 onwards, the cash ratio started to decline and fluctuate, indicating a potential decrease in liquidity. The ratio dropped below 2 from April 2023 to April 2024, indicating a lower ability to cover short-term obligations with available cash. This could be a concern for stakeholders as it may signal a reduced ability to meet immediate financial requirements.
Overall, while HealthEquity Inc's cash ratio has shown some fluctuations, it is important for investors and analysts to closely monitor this metric to assess the company's liquidity position and ability to meet its short-term obligations effectively.
Peer comparison
Jan 31, 2025