HealthEquity Inc (HQY)

Pretax margin

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	75,040	45,331	18,064	-10,033	-38,096	-81,869	-84,814	-78,726	-66,741	-24,318	-11,064	-3,970	4,140	4,875	-30,506	-6,079	43,155	60,122	108,805	106,557
Revenue (ttm)	US$ in thousands	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	525,114	399,691	323,044	305,671
Pretax margin		7.83%	4.95%	2.04%	-1.18%	-4.67%	-10.38%	-11.33%	-10.70%	-9.30%	-3.44%	-1.55%	-0.57%	0.59%	0.68%	-4.39%	-0.99%	8.22%	15.04%	33.68%	34.86%

January 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $75,040K ÷ $958,410K
= 7.83%

HealthEquity Inc's pretax margin has been fluctuating over the past few periods. The pretax margin improved significantly from a negative -10.38% in October 2022 to 7.83% in January 2024. This positive trend indicates that the company's profitability before taxes has improved. However, it's worth noting that the pretax margin was negative in some periods, indicating that the company was operating at a loss before taxes.

Overall, HealthEquity Inc should continue monitoring its pretax margin closely to ensure sustainable profitability and efficiency in its operations.