HealthEquity Inc (HQY)

Gross profit margin

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Gross profit	US$ in thousands	622,637	491,935	423,706	415,334	325,909
Revenue	US$ in thousands	945,655	815,511	717,771	700,488	507,971
Gross profit margin		65.84%	60.32%	59.03%	59.29%	64.16%

January 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $622,637K ÷ $945,655K
= 65.84%

Over the past five years, HealthEquity Inc has shown a consistent trend of improvement in its gross profit margin. The company's gross profit margin has increased from 64.16% in January 2020 to 65.84% in January 2024. This indicates that HealthEquity Inc has been effectively managing its cost of goods sold and enhancing its pricing strategies to generate higher gross profits relative to its revenue. The steady improvement in gross profit margin demonstrates the company's ability to maintain a healthy level of profitability from its core operations over the years.