HealthEquity, Inc. — Earnings Quality Grade F
HQY · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 34 days, change -2 days YoY
AR growth 4.8% vs revenue growth 9.5%
Revenue 9.5%, CFFO 34.5%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -90.3% vs revenue 9.5%. Normal
SG&A/Gross Profit = 23.6%, excellent (<30%)
Gross margin 69.5%, change +4.7pp. Stable
Cash Flow Quality
CFFO/NI = 2.12. Profits backed by cash
FCF $0.4B, FCF/NI = 1.90
Accruals ratio = -7.2%. Low accruals
Cash $0.3B covers only 32% of debt $1.0B
Balance Sheet Health
Goodwill+Intangibles $2.7B = 130% of equity. Over 50%
Debt/EBITDA = 2.0x. Healthy
Other assets 16.3% vs revenue 9.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -4% YoY. Normal
Manipulation Score
M-Score = -2.77 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25