HealthEquity Inc (HQY)

Return on assets (ROA)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net income	US$ in thousands	55,712	-26,143	-44,289	8,834	39,664
Total assets	US$ in thousands	3,163,790	3,088,900	3,107,100	2,710,410	2,564,980
ROA		1.76%	-0.85%	-1.43%	0.33%	1.55%

January 31, 2024 calculation

ROA = Net income ÷ Total assets
= $55,712K ÷ $3,163,790K
= 1.76%

HealthEquity Inc's return on assets (ROA) has varied over the past five years, starting at 1.55% in 2020, then decreasing to 0.33% in 2021, turning negative at -1.43% in 2022 and -0.85% in 2023, and finally rebounding to 1.76% in 2024. This fluctuation indicates inconsistent profitability relative to the company's total assets during this period. The negative ROA values in 2022 and 2023 suggest that the company was not effectively generating earnings from its assets, potentially indicating operational inefficiencies or financial challenges during those years. However, the positive ROA in 2024 demonstrates an improvement in profitability efficiency compared to the previous years. Overall, HealthEquity Inc should continue assessing and improving its asset management strategies to sustain consistent and positive ROA performance in the future.