HealthEquity Inc (HQY)

Current ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Total current assets	US$ in thousands	557,436	382,893	351,337	460,177	297,300
Total current liabilities	US$ in thousands	117,091	131,061	153,187	204,701	151,937
Current ratio		4.76	2.92	2.29	2.25	1.96

January 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $557,436K ÷ $117,091K
= 4.76

The current ratio of HealthEquity Inc has shown a positive trend over the past five years, increasing from 1.96 in January 2020 to 4.76 in January 2024. This indicates an improvement in the company's short-term liquidity and ability to cover its current liabilities with current assets. The ratio has consistently been above 1, reflecting a healthy financial position and the company's ability to meet its short-term obligations. The significant increase in the current ratio over the years suggests that HealthEquity Inc has been effectively managing its current assets and liabilities, enhancing its financial stability and operational efficiency. Overall, the current ratio trend of HealthEquity Inc demonstrates a strengthening liquidity position and solid financial health.