HealthEquity Inc (HQY)
Pretax margin
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 75,040 | -38,096 | -66,741 | 4,140 | 43,155 |
| Revenue | US$ in thousands | 945,655 | 815,511 | 717,771 | 700,488 | 507,971 |
| Pretax margin | 7.94% | -4.67% | -9.30% | 0.59% | 8.50% |
January 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $75,040K ÷ $945,655K
= 7.94%
HealthEquity Inc's pretax margin has shown significant variation over the past five years. In 2024, the pretax margin improved to 7.94%, indicating the company generated a higher percentage of profit before taxes relative to its total revenue. This is a positive indication of the company's operational efficiency and profitability.
In contrast, the pretax margin was negative in 2023 and 2022, at -4.67% and -9.30% respectively. A negative pretax margin suggests that the company's expenses exceeded its revenue before accounting for taxes, which can be a concern for investors and stakeholders.
The pretax margin was positive but relatively low in 2021 at 0.59%, indicating a narrow profitability margin. However, in 2020, HealthEquity Inc's pretax margin was higher at 8.50%, suggesting a healthier financial performance compared to the preceding years.
Overall, the fluctuation in HealthEquity Inc's pretax margin highlights the company's changing profitability and financial health over the years, indicating the need for further analysis to understand the underlying reasons for these fluctuations.
Peer comparison
Jan 31, 2024