HealthEquity Inc (HQY)

Operating profit margin

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Operating income (ttm)	US$ in thousands	162,334	159,071	170,337	136,148	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
Revenue (ttm)	US$ in thousands	1,203,871	1,153,288	1,088,356	1,018,339	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
Operating profit margin		13.48%	13.79%	15.65%	13.37%	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%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $162,334K ÷ $1,203,871K
= 13.48%

HealthEquity Inc's operating profit margin has shown fluctuations over the past few years. From January 2023 to October 2022, the company experienced negative operating profit margins, indicating that its operating expenses were outpacing its operating income during that period. However, starting from January 2023, the trend reversed, and the operating profit margin began to increase steadily.

The operating profit margin improved from 1.11% in January 2023 to 13.48% in January 2025. This upward trend indicates that the company has been able to effectively control its operating expenses and improve the efficiency of its operations. A higher operating profit margin suggests that HealthEquity Inc is generating more profits from its core business activities relative to its operating costs.

Overall, the increasing trend in operating profit margin from January 2023 to January 2025 reflects positively on the company's operational efficiency and profitability. It shows that HealthEquity Inc has managed to enhance its profitability by effectively managing its operating expenses and increasing its operating income over this period.