HealthEquity Inc (HQY)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	55,712	29,139	12,825	-8,410	-26,143	-58,752	-62,149	-55,313	-44,289	-6,104	723	4,393	8,834	3,277	-19,846	-332	39,664	52,973	89,993	93,144
Total stockholders’ equity	US$ in thousands	2,035,020	1,987,970	1,949,610	1,918,590	1,895,640	1,883,120	1,864,900	1,855,260	1,852,580	1,871,850	1,862,670	1,848,270	1,378,730	1,355,260	1,340,340	1,040,650	1,030,300	1,017,760	1,017,030	529,299
ROE		2.74%	1.47%	0.66%	-0.44%	-1.38%	-3.12%	-3.33%	-2.98%	-2.39%	-0.33%	0.04%	0.24%	0.64%	0.24%	-1.48%	-0.03%	3.85%	5.20%	8.85%	17.60%

January 31, 2024 calculation

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

HealthEquity Inc's return on equity (ROE) has displayed fluctuating performance over the past several quarters. The ROE ranged from a low of -3.33% in July 2022 to a high of 17.60% in July 2019. Overall, the company's ROE has been generally declining from positive levels in 2019 to negative figures in 2023 and 2024.

The negative ROE values in recent quarters indicate that HealthEquity Inc has been facing challenges in generating profits relative to its equity base. This could be concerning for investors and stakeholders as it suggests a decrease in the company's ability to generate returns on shareholders' equity.

It is important for the company to focus on improving its profitability and operational efficiency to enhance its ROE in the future. Management may need to consider strategies to optimize the utilization of equity capital and maximize returns to drive sustainable growth and create value for shareholders.