HealthEquity Inc (HQY)

Liquidity ratios

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
Current ratio 3.06 3.20 4.10 4.39 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
Quick ratio 2.65 2.78 3.60 3.88 4.35 4.47 3.71 3.61 2.68 2.70 2.13 2.10 2.04 6.85 4.47 4.22 1.96 2.40 2.21 1.79
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

HealthEquity Inc's liquidity ratios indicate a strong ability to meet its short-term obligations. The current ratio has been consistently above 2, reaching a peak of 7.14 on October 31, 2021, and staying above 3 for most periods since then. This suggests that the company has more than enough current assets to cover its current liabilities, providing a solid buffer for potential financial challenges.

The quick ratio, which excludes inventory from current assets, also displays a healthy trend, with values consistently above 2 for the most recent periods. This ratio indicates the company's ability to meet its short-term liabilities without relying on selling inventory, which is a positive sign of efficient liquidity management.

The cash ratio, which is the most conservative measure of liquidity, has shown solid improvement over the years, with values gradually increasing. The company's ability to cover its current liabilities with cash and cash equivalents has strengthened, although there was a slight decline in the most recent period.

Overall, HealthEquity Inc's liquidity ratios demonstrate a robust financial position, with ample liquidity to meet its short-term obligations and potential unforeseen expenses.

Additional liquidity measure

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 conversion cycle days 29.57 28.57 30.62 27.93 33.01 31.48 31.83 35.51 36.23 32.85 36.06 35.62 29.78 40.43 35.17 33.04 36.93 27.88 28.98 35.53

The cash conversion cycle of HealthEquity Inc has shown fluctuations over the reporting periods in the dataset provided. The cash conversion cycle is a metric that measures the time it takes for a company to convert its investments in inventory and other resources to cash flows from sales.

From the data, we observe that the company's cash conversion cycle ranged from a low of 27.88 days in October 31, 2020, to a high of 40.43 days in October 31, 2021. This indicates that, on average, the company takes between approximately 28 and 40 days to convert its investments into cash inflows from sales.

It is notable that the cash conversion cycle generally remained within a relatively consistent range throughout the periods, with some periodic increases and decreases. Management may need to focus on optimizing the cycle to reduce the time taken to convert investments into cash flows, as a shorter cycle can improve liquidity and efficiency.

Analyzing the trend of the cash conversion cycle over time can provide insights into the company's working capital management and operational efficiency. By closely monitoring and managing the components of the cycle, HealthEquity Inc can potentially enhance its cash flow management and overall financial performance.