HealthEquity Inc (HQY)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	96,703	96,702	105,672	80,431	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
Total stockholders’ equity	US$ in thousands	2,114,910	2,124,690	2,157,040	2,097,780	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
ROE		4.57%	4.55%	4.90%	3.83%	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%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $96,703K ÷ $2,114,910K
= 4.57%

HealthEquity Inc's return on equity (ROE) has experienced fluctuations over the past few years. The ROE was negative for several quarters up until January 31, 2024, indicating that the company was not generating significant profits relative to shareholders' equity. However, starting from April 30, 2024, the ROE turned positive and showed a steady increase in subsequent quarters.

The positive trend in ROE from April 30, 2024, to January 31, 2025, suggests that the company has been able to improve its profitability relative to the shareholders' equity during this period. This could be due to effective cost management, revenue growth, or enhanced operational efficiencies.

It is essential for investors and stakeholders to monitor HealthEquity Inc's ROE performance closely to determine the company's ability to generate profits from the shareholders' equity and to assess its overall financial health and performance in the market.