HealthEquity Inc (HQY)

Liquidity ratios

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
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
Quick ratio 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 1.73 1.70 24.87 18.55
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

HealthEquity Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have shown a consistently strong liquidity position over the past few quarters. The current ratio has been above 2, indicating the company's ability to cover its short-term obligations with its current assets. Additionally, the current ratio has been consistently increasing, reaching 4.76 as of January 31, 2024, showing a robust liquidity position.

The quick ratio, which provides a more conservative measure of a company's liquidity by excluding inventory from current assets, has also been above 2 for most periods, reflecting the company's ability to meet its short-term obligations even without relying on inventory. The quick ratio has followed a similar increasing trend as the current ratio, reaching 4.35 as of January 31, 2024.

Furthermore, the cash ratio, which assesses the company's ability to cover its short-term liabilities with its cash and cash equivalents, has also been consistently strong, staying above 1 for all periods. This indicates that HealthEquity Inc has a sufficient amount of cash on hand to meet its immediate obligations. The cash ratio has been on an upward trend, reaching 3.45 as of January 31, 2024.

Overall, HealthEquity Inc's liquidity ratios demonstrate a solid and improving liquidity position, indicating the company's ability to meet its short-term obligations and maintain financial stability.

Additional liquidity measure

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 conversion cycle days 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 45.20 51.23 25.58 28.09

The cash conversion cycle of HealthEquity Inc has shown some fluctuations over the past few quarters. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has ranged from a low of 27.88 days to a high of 51.23 days over the period under review.

On average, HealthEquity Inc takes around 33 days to complete its cash conversion cycle. A lower cash conversion cycle indicates that the company is efficient in managing its working capital and can quickly convert its investments into cash, potentially signaling strong liquidity and operational efficiency. Conversely, a higher cash conversion cycle may indicate inefficiencies in the company's operations and working capital management.

It is important for HealthEquity Inc to closely monitor and manage its cash conversion cycle to optimize its working capital and liquidity position. By efficiently managing its inventory, accounts receivable, and accounts payable, the company can improve its cash conversion cycle and overall financial performance.