HealthEquity Inc (HQY)

Operating profit margin

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Operating income	US$ in thousands	162,334	117,699	9,057	-24,238	34,014
Revenue	US$ in thousands	1,202,300	945,655	815,511	717,771	700,488
Operating profit margin		13.50%	12.45%	1.11%	-3.38%	4.86%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $162,334K ÷ $1,202,300K
= 13.50%

HealthEquity Inc's operating profit margin has shown fluctuations over the past five years. In January 31, 2021, the company reported an operating profit margin of 4.86%, indicating that for every dollar of revenue generated, the company retained $0.0486 as operating profit. However, by January 31, 2022, the operating profit margin turned negative at -3.38%, signaling that the company's operating expenses exceeded its operating profit, resulting in a loss.

The following year, on January 31, 2023, the operating profit margin improved to 1.11%, suggesting a slight recovery in profitability. Subsequently, in January 31, 2024, the operating profit margin surged to 12.45%, indicating a significant positive trend and improved efficiency in managing operating expenses.

In the most recent period as of January 31, 2025, the operating profit margin increased further to 13.50%, showcasing a strong performance in generating profits from operations. These fluctuations in the operating profit margin reflect changes in the company's cost structure, revenue generation, and efficiency in managing operational expenses.