HealthEquity Inc (HQY)

Operating profit margin

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Operating income (ttm)	US$ in thousands	117,699	92,028	66,679	39,527	9,057	-31,409	-37,317	-35,780	-24,238	1,425	13,293	23,196	34,014	50,143	48,563	64,399	77,006	79,045	88,109	84,808
Revenue (ttm)	US$ in thousands	958,410	916,132	884,134	848,438	815,511	788,427	748,466	735,565	717,815	706,638	714,959	700,254	700,489	719,841	694,134	614,980	525,114	399,691	323,044	305,671
Operating profit margin		12.28%	10.05%	7.54%	4.66%	1.11%	-3.98%	-4.99%	-4.86%	-3.38%	0.20%	1.86%	3.31%	4.86%	6.97%	7.00%	10.47%	14.66%	19.78%	27.27%	27.74%

January 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $117,699K ÷ $958,410K
= 12.28%

HealthEquity Inc's operating profit margin has shown a fluctuating trend over the past few quarters. The company's operating profit margin was steadily increasing from the third quarter of 2019 to the first quarter of 2020, reaching a peak of 27.74%. However, since then, the margin has experienced a decline, turning negative in the third and fourth quarters of 2020 and remaining negative until the second quarter of 2022.

From the third quarter of 2022 onwards, the operating profit margin started to improve, with consecutive increases quarter over quarter. The latest reported margin for January 31, 2024, stands at 12.28%, indicating a significant recovery compared to the previous quarters.

It is essential for investors and stakeholders to closely monitor the trend in operating profit margin as it reflects the company's ability to generate profits from its core operations. The recent positive trend in HealthEquity Inc's operating profit margin signals a potential improvement in the company's operational efficiency and profitability.