HealthEquity Inc (HQY)

Current 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
Total current assets	US$ in thousands	557,436	474,408	422,557	358,409	382,893	332,160	308,586	278,923	351,337	764,131	860,614	865,111	460,177	396,030	383,127	283,783	297,300	270,323	853,516	364,576
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
Current ratio		4.76	4.93	4.09	4.00	2.92	3.01	2.46	2.37	2.29	7.14	4.65	4.50	2.25	2.62	2.49	2.11	1.96	1.91	22.98	15.59

January 31, 2024 calculation

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

HealthEquity Inc's current ratio has been relatively stable over the past few quarters, ranging from 2.29 to 4.93. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive indicator of its liquidity.

The current ratio peaked at 7.14 in the third quarter of 2021, indicating a strong ability to meet short-term obligations. However, it has declined since then but remained above 2 in most periods, showing that HealthEquity Inc has a healthy level of current assets relative to its current liabilities.

It is worth noting the significant increase in the current ratio in the first quarter of 2019 and the fourth quarter of 2019, reaching extremely high levels of 22.98 and 15.59, respectively. These unusually high ratios may be due to specific events or accounting adjustments during those periods that significantly impacted the balance of current assets and liabilities.

Overall, HealthEquity Inc's current ratio indicates sound liquidity and ability to cover short-term obligations, with a general trend of improvement in recent quarters.