HealthEquity Inc (HQY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	191,726	174,557	815,160	329,310
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	81,100	77,400
Total current liabilities	US$ in thousands	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	151,937	141,860	37,141	23,378
Cash ratio		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	1.26	1.23	24.13	17.40

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 fluctuated over the periods provided. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

From the data provided, we observe that the cash ratio has generally been fluctuating within a reasonable range, with occasional spikes notably in Oct 2021, Jan 2020, and Jul 2019, which could suggest a strong cash position during those periods. However, caution should be exercised when interpreting exceptionally high ratios as they may indicate an inefficient use of cash resources.

It is important for HealthEquity Inc to maintain a healthy balance between cash reserves and investment in growth opportunities to ensure liquidity and long-term sustainability. Further analysis of the company's cash management practices and future cash flow projections would provide a more comprehensive understanding of its financial health.