HealthEquity Inc (HQY)
Quick ratio
| 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 | US$ in thousands | 295,948 | 322,163 | 326,893 | 251,229 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 118,006 | 106,712 | 108,454 | 106,218 | 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 |
| Total current liabilities | US$ in thousands | 156,323 | 154,539 | 120,908 | 92,217 | 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 |
| 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 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($295,948K
+ $—K
+ $118,006K)
÷ $156,323K
= 2.65
The quick ratio, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets.
Analyzing the quick ratio of HealthEquity Inc from April 30, 2020, to January 31, 2025, we observe fluctuations in the ratio over time. The quick ratio increased steadily from 1.79 on April 30, 2020, to a peak of 6.85 on October 31, 2021, indicating a significant improvement in the company's short-term liquidity position.
Subsequently, the quick ratio experienced some volatility but generally remained above 2, reflecting a strong ability to cover its current liabilities with highly liquid assets. However, there were slight declines in the ratio in the latter periods, dropping to 2.65 on January 31, 2025, from the peak observed in October 31, 2021.
Overall, HealthEquity Inc maintained a healthy quick ratio throughout the period, which suggests a sound financial position and the ability to meet its short-term obligations efficiently. The slight fluctuations in the ratio should be further investigated to assess any underlying changes in the company's liquidity management.
Peer comparison
Jan 31, 2025