HealthEquity Inc (HQY)
Pretax margin
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 116,034 | 75,040 | -38,096 | -66,741 | 4,140 |
| Revenue | US$ in thousands | 1,202,300 | 945,655 | 815,511 | 717,771 | 700,488 |
| Pretax margin | 9.65% | 7.94% | -4.67% | -9.30% | 0.59% |
January 31, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $116,034K ÷ $1,202,300K
= 9.65%
HealthEquity Inc's pretax margin has exhibited fluctuations over the past five years. In January 2021, the pretax margin was 0.59%, indicating that the company's pre-tax earnings accounted for only a small percentage of its total revenue. However, in January 2022, the pretax margin significantly declined to -9.30%, signaling that the company's pre-tax earnings were exceeded by its expenses, resulting in a loss before taxes.
The trend improved slightly in January 2023, with the pretax margin improving to -4.67%, although it remained negative. In the following years, there was a notable turnaround, with the pretax margin reaching 7.94% in January 2024 and further increasing to 9.65% in January 2025. These positive percentages indicate that HealthEquity Inc's pre-tax earnings have grown to represent a more significant portion of its total revenue, suggesting improved operational efficiency and profitability.
Overall, the trend in HealthEquity Inc's pretax margin demonstrates variability and volatility in its financial performance, with recent years showing a reversal from negative to positive margins, indicating a potential improvement in the company's financial health and operational effectiveness.
Peer comparison
Jan 31, 2025