HealthEquity Inc (HQY)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 64.65% | 65.84% | 60.32% | 59.03% | 59.29% |
| Operating profit margin | 13.50% | 12.45% | 1.11% | -3.38% | 4.86% |
| Pretax margin | 9.65% | 7.94% | -4.67% | -9.30% | 0.59% |
| Net profit margin | 8.04% | 5.89% | -3.21% | -6.17% | 1.26% |
HealthEquity Inc has shown a consistent improvement in its gross profit margin over the past five years, increasing from 59.29% in January 31, 2021, to 64.65% in January 31, 2025. This indicates the company's ability to control its production costs and generate higher profits on sales.
In terms of operating profit margin, HealthEquity Inc experienced a significant improvement from a negative margin of -3.38% in January 31, 2022, to a positive margin of 13.50% in January 31, 2025. This suggests that the company has successfully managed its operating expenses and increased efficiency in its core operations.
The pretax margin also reflects a positive trend for HealthEquity Inc, with an increase from -9.30% in January 31, 2022, to 9.65% in January 31, 2025. This indicates that the company's profitability before taxes has improved significantly over the years.
Furthermore, the net profit margin of HealthEquity Inc has steadily increased from -6.17% in January 31, 2022, to 8.04% in January 31, 2025. This demonstrates the company's ability to effectively manage its overall expenses and generate higher profits for its shareholders.
Overall, HealthEquity Inc's profitability ratios have shown a positive trajectory over the past five years, reflecting the company's successful efforts in enhancing its profitability and operational efficiency.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.71% | 3.72% | 0.29% | -0.78% | 1.25% |
| Return on assets (ROA) | 2.80% | 1.76% | -0.85% | -1.43% | 0.33% |
| Return on total capital | 5.12% | 4.48% | 0.37% | -1.09% | 1.69% |
| Return on equity (ROE) | 4.57% | 2.74% | -1.38% | -2.39% | 0.64% |
HealthEquity Inc's profitability ratios have shown a mixed performance over the years.
1. Operating return on assets (Operating ROA) indicates the company's ability to generate operating profit from its assets. The trend for this ratio has been fluctuating, with a significant improvement in January 2025 compared to the previous years.
2. Return on assets (ROA) measures the company's ability to generate profit from its total assets. The ROA has also seen fluctuations, with negative values in January 2022 and 2023, but showing improvement in January 2024 and 2025.
3. Return on total capital reflects the company's ability to generate returns for all its capital providers. This ratio has shown improvement over the years, particularly in January 2024 and 2025, indicating effective capital utilization.
4. Return on equity (ROE) assesses the company's ability to generate profit from shareholders' equity. Despite experiencing negative ROE in January 2022 and 2023, HealthEquity Inc has shown a positive trend in this ratio, with noticeable improvement in January 2024 and 2025.
Overall, the company's profitability ratios suggest varying performance levels, with certain years showing stronger profitability than others. Potential areas for further examination include operational efficiency and capital structure management to enhance profitability in the future.