HealthEquity Inc (HQY)

Pretax margin

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	116,054	115,775	130,659	98,267	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
Revenue (ttm)	US$ in thousands	1,203,871	1,153,288	1,088,356	1,018,339	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
Pretax margin		9.64%	10.04%	12.01%	9.65%	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%

January 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $116,054K ÷ $1,203,871K
= 9.64%

HealthEquity Inc has shown fluctuations in its pretax margin over the period from April 2020 to January 2025. The pretax margin started in negative territory at -0.99% in April 2020, deteriorated further to -4.39% in July 2020, and then improved to 0.68% by October 2020. However, the company faced challenges as the pretax margin turned negative again in the subsequent quarters, reaching a low of -11.33% in July 2022.

After this period of decline, HealthEquity Inc began to recover, with pretax margins improving steadily from July 2023 onwards. The positive trend continued into the following quarters, with the pretax margin reaching 9.64% by January 2025. This turnaround suggests that the company implemented strategies to control costs and improve operational efficiency, leading to improved profitability. Despite the fluctuations, the overall trend indicates an improving financial performance for HealthEquity Inc in recent quarters.