HealthEquity Inc (HQY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,035,020	1,895,640	1,852,580	1,378,730	1,030,300
ROE		2.74%	-1.38%	-2.39%	0.64%	3.85%

January 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $55,712K ÷ $2,035,020K
= 2.74%

HealthEquity Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In the latest fiscal year ending January 31, 2024, the company's ROE stood at 2.74%, indicating a slight improvement compared to the negative ROE figures recorded in the previous two years.

The negative ROE figures in the fiscal years ending January 31, 2023 and January 31, 2022, at -1.38% and -2.39% respectively, suggest that during these periods, the company's net income was insufficient to generate returns for its shareholders. This may indicate operational inefficiencies, financial challenges, or poor performance relative to the company's equity base.

The modest positive ROE of 0.64% in the fiscal year ending January 31, 2021, followed by a slightly higher ROE of 3.85% in the fiscal year ending January 31, 2020, indicate a potential turnaround in the company's profitability and efficiency in utilizing its equity to generate returns for shareholders.

Overall, HealthEquity Inc's ROE performance reveals volatility and fluctuations over the past five years, signaling a need for further analysis to understand the factors driving these changes and to assess the company's effectiveness in generating returns on its equity investments.