HealthEquity Inc (HQY)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 162,334 | 130,495 | 10,328 | -30,169 | 39,021 |
| Long-term debt | US$ in thousands | 1,056,300 | 874,972 | 907,838 | 922,077 | 924,217 |
| Total stockholders’ equity | US$ in thousands | 2,114,910 | 2,035,020 | 1,895,640 | 1,852,580 | 1,378,730 |
| Return on total capital | 5.12% | 4.48% | 0.37% | -1.09% | 1.69% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $162,334K ÷ ($1,056,300K + $2,114,910K)
= 5.12%
HealthEquity Inc's return on total capital has shown variability over the past five years. In January 2021, the return on total capital was 1.69%, indicating a modest profitability on the capital employed. However, the following year, in January 2022, the return on total capital turned negative at -1.09%, signaling that the company experienced a decrease in profitability or incurred losses relative to the capital invested.
In the subsequent years, there was a slight improvement in the return on total capital. By January 2023, the return on total capital stood at 0.37%, showing a small increase in profitability compared to the previous year. The trend continued to improve in January 2024, with a more significant jump in the return on total capital to 4.48%, indicating a notable increase in profitability relative to the capital employed.
The most recent data point in January 2025 revealed the highest return on total capital at 5.12%, suggesting HealthEquity Inc has been able to further enhance its profitability on the capital invested. Overall, the analysis of the return on total capital indicates fluctuations in profitability, with the company demonstrating the ability to improve returns in recent years, which may reflect positively on its operational efficiency and capital management strategies.
Peer comparison
Jan 31, 2025