HealthEquity Inc (HQY)

Gross profit margin

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Gross profit	US$ in thousands	777,259	622,637	491,935	423,706	415,334
Revenue	US$ in thousands	1,202,300	945,655	815,511	717,771	700,488
Gross profit margin		64.65%	65.84%	60.32%	59.03%	59.29%

January 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $777,259K ÷ $1,202,300K
= 64.65%

HealthEquity Inc's gross profit margin has displayed a generally positive trend over the past five years. Starting at 59.29% on January 31, 2021, it decreased slightly to 59.03% on January 31, 2022, before rising to 60.32% on January 31, 2023. The trend continued upward significantly in the following years, reaching 65.84% on January 31, 2024, and then slightly decreasing to 64.65% on January 31, 2025. This indicates that HealthEquity Inc has been able to effectively manage its production costs and maintain a healthy margin of profitability from its core business operations over the years, with a notable improvement in 2024. Overall, the company's ability to sustain a gross profit margin above 60% reflects its efficiency in generating revenue after accounting for the direct costs associated with production or service delivery.