HealthEquity Inc (HQY)

Operating return on assets (Operating ROA)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Operating income	US$ in thousands	117,699	9,057	-24,238	34,014	77,006
Total assets	US$ in thousands	3,163,790	3,088,900	3,107,100	2,710,410	2,564,980
Operating ROA		3.72%	0.29%	-0.78%	1.25%	3.00%

January 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $117,699K ÷ $3,163,790K
= 3.72%

In analyzing HealthEquity Inc's operating return on assets (ROA) over the last five years, we observe significant fluctuations in performance.

In January 2024, the company's operating ROA stood at 3.72%, showing a notable improvement compared to the previous year. This increase indicates that HealthEquity Inc generated $3.72 in operating income for every $100 of assets it had during the period, reflecting enhanced operational efficiency and effectiveness in asset utilization.

However, the operating ROA was much lower in January 2023, at 0.29%, suggesting a decline in profitability and asset productivity. The negative operating ROA of -0.78% in January 2022 highlights a period of inefficiency and operational challenges, where the company incurred operating losses relative to its asset base.

The operating ROA rebounded to 1.25% in January 2021, indicating a partial recovery in performance, though still below the levels seen in 2020. Notably, the highest operating ROA of 3.00% was recorded in January 2020, reflecting the company's historical peak in generating operating income from its asset base.

Overall, the fluctuating trend in HealthEquity Inc's operating ROA underscores the importance of closely monitoring and managing the company's operational efficiency and asset utilization to sustain profitability and create long-term shareholder value.