HealthEquity Inc (HQY)

Quick 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	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
Receivables	US$ in thousands	104,893	96,181	92,581	98,414	96,835	87,716	90,426	86,003	87,428	84,083	74,223	74,468	72,767	64,291	70,235	69,789	70,863	66,647	27,357	27,022
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
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

January 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($403,979K + $—K + $104,893K) ÷ $117,091K
= 4.35

The quick ratio of HealthEquity Inc has displayed fluctuations over the specified periods. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Analyzing the data provided:
- The quick ratio ranged from 1.70 to 6.85 over the past two years, showing variability in the company's liquidity position.
- In general, HealthEquity Inc maintained a healthy quick ratio above 2, indicating a strong ability to cover its short-term liabilities with its liquid assets.
- The quick ratio spiked to exceptionally high levels of 18.55 and 24.87 in the third and fourth quarters of 2019, respectively, which might be due to specific events or financial strategies during those periods.
- The quick ratio experienced a significant drop in the first quarter of 2021, falling to 1.96, which could indicate potential liquidity challenges or a change in the composition of current assets.

Overall, the quick ratio trend suggests that HealthEquity Inc has generally maintained a strong liquidity position, enabling it to meet its short-term obligations. However, the company experienced fluctuations that may warrant further investigation to understand the underlying reasons behind these variations.