HealthEquity Inc (HQY)

Net profit margin

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Net income	US$ in thousands	96,703	55,712	-26,143	-44,289	8,834
Revenue	US$ in thousands	1,202,300	945,655	815,511	717,771	700,488
Net profit margin		8.04%	5.89%	-3.21%	-6.17%	1.26%

January 31, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $96,703K ÷ $1,202,300K
= 8.04%

Based on the provided data, HealthEquity Inc's net profit margin has shown fluctuations over the past five years. The net profit margin indicates the percentage of revenue that translates into profits after accounting for all expenses.

In January 2021, HealthEquity Inc had a net profit margin of 1.26%, indicating that the company generated a modest profit relative to its revenue. However, the following year, in January 2022, the net profit margin dipped significantly to -6.17%, indicating that the company incurred losses exceeding its revenue. This negative margin suggests that HealthEquity Inc experienced financial challenges or inefficiencies in managing its expenses.

Moving forward, in January 2023, the net profit margin improved slightly but remained negative at -3.21%. This suggests that the company was still struggling to achieve profitability. However, the financial performance took a positive turn in January 2024, with a net profit margin of 5.89%, indicating a significant improvement in profitability.

By January 2025, HealthEquity Inc's net profit margin further increased to 8.04%, reflecting a healthy profitability level. This positive trend indicates that the company may have implemented successful strategies to increase revenue and manage expenses effectively, leading to a more favorable financial performance.

Overall, the analysis of HealthEquity Inc's net profit margin demonstrates a fluctuating pattern over the past five years, with the company navigating through challenges to achieve positive profitability levels in more recent years.