HealthEquity Inc (HQY)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,448,550 | 3,163,790 | 3,088,900 | 3,107,100 | 2,710,410 |
| Operating ROA | 4.71% | 3.72% | 0.29% | -0.78% | 1.25% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $162,334K ÷ $3,448,550K
= 4.71%
HealthEquity Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In January 2021, the operating ROA was 1.25%, indicating that the company generated $0.0125 in operating income for every $1 of assets. However, by January 2022, the operating ROA turned negative at -0.78%, suggesting that the company experienced a decline in operating income relative to its assets.
In the following year, January 2023, the operating ROA improved to 0.29%, although it remained relatively low compared to historical levels. The trend reversed in January 2024, with the operating ROA surging to 3.72%, indicating a significant improvement in the company's operational efficiency and profitability.
The most recent data point, January 2025, shows a further increase in operating ROA to 4.71%, signaling HealthEquity Inc's ability to generate more operating income from its assets. Overall, the trajectory of operating ROA suggests a mix of challenges and improvements in the company's operational performance over the analyzed period. Further analysis of the underlying factors contributing to these fluctuations would provide a more nuanced understanding of HealthEquity Inc's financial health.
Peer comparison
Jan 31, 2025