HealthEquity Inc (HQY)
Profitability ratios
Return on sales
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.84% | 60.32% | 59.03% | 59.29% | 64.16% |
| Operating profit margin | 12.45% | 1.11% | -3.38% | 4.86% | 15.16% |
| Pretax margin | 7.94% | -4.67% | -9.30% | 0.59% | 8.50% |
| Net profit margin | 5.89% | -3.21% | -6.17% | 1.26% | 7.81% |
HealthEquity Inc has shown an improving trend in gross profit margin over the last five years, increasing from 64.16% in 2020 to 65.84% in 2024. This indicates that the company has been able to control its cost of goods sold effectively and generate higher gross profits.
However, the operating profit margin has been quite volatile, with a significant improvement to 12.45% in 2024 from 1.11% in 2023, after experiencing a negative operating profit margin in 2022. This suggests that HealthEquity Inc has been successful in managing its operating expenses more efficiently in recent years.
Similarly, the pretax margin has shown improvement, moving from a negative figure in 2022 and 2023 to positive 7.94% in 2024. This indicates that the company's income before taxes as a percentage of revenue has been increasing, reflecting better financial performance.
Despite the improvements in operating and pretax margins, the net profit margin of HealthEquity Inc remains positive throughout the five-year period, ranging from -3.21% in 2023 to 7.81% in 2020. It is important to note that the company managed to maintain profitability even during challenging years and displayed resilience in generating net profits relative to its revenue.
Overall, HealthEquity Inc has shown positive trends in its profitability ratios, especially in gross profit margin and net profit margin, indicating effective cost management and sound financial performance in recent years.
Return on investment
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.72% | 0.29% | -0.78% | 1.25% | 3.00% |
| Return on assets (ROA) | 1.76% | -0.85% | -1.43% | 0.33% | 1.55% |
| Return on total capital | 4.48% | 0.37% | -1.09% | 1.69% | 3.07% |
| Return on equity (ROE) | 2.74% | -1.38% | -2.39% | 0.64% | 3.85% |
HealthEquity Inc's profitability ratios have shown varying trends over the past five years.
- Operating return on assets (Operating ROA) has fluctuated significantly, from a low of -0.78% in 2022 to a high of 3.72% in 2024. This ratio indicates the company's ability to generate operating profits from its assets.
- Return on assets (ROA) has also been volatile, with negative values in 2021 and 2023. In 2024, the ratio improved to 1.76%, indicating that the company is generating a modest return on its total assets.
- Return on total capital saw a similar pattern of fluctuation, with negative values in 2022 and a peak of 4.48% in 2024. This ratio reflects the company's ability to generate a return from both equity and debt capital.
- Return on equity (ROE) has also varied significantly, with negative values in 2022 and 2023. In 2024, the ratio improved to 2.74%, indicating that the company is generating a positive return for its shareholders.
Overall, it appears that HealthEquity Inc has experienced ups and downs in its profitability performance over the past five years. Investors and analysts should closely monitor these ratios to gauge the company's ability to generate profits and create value for its stakeholders.