HealthEquity Inc (HQY)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	130,495	101,450	72,803	42,927	10,328	-37,002	-40,231	-38,382	-30,169	8,277	16,602	25,337	39,021	47,402	15,294	30,893	67,927	70,543	109,069	106,829
Long-term debt	US$ in thousands	874,972	874,270	873,581	872,902	907,838	911,406	914,966	918,514	922,077	923,501	895,449	909,820	924,217	938,558	952,898	1,167,190	1,181,620	1,196,020	—	—
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
Return on total capital		4.48%	3.54%	2.58%	1.54%	0.37%	-1.32%	-1.45%	-1.38%	-1.09%	0.30%	0.60%	0.92%	1.69%	2.07%	0.67%	1.40%	3.07%	3.19%	10.72%	20.18%

January 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $130,495K ÷ ($874,972K + $2,035,020K)
= 4.48%

The return on total capital for HealthEquity Inc has shown fluctuations over the past few quarters. From January 31, 2019 to October 31, 2020, the return on total capital ranged from 3.19% to 20.18%. However, starting from January 31, 2021, there was a downward trend in the return on total capital, dipping into negative territory for several quarters before gradually improving.

The return on total capital for the most recent quarter ending January 31, 2024, stands at 4.48%, showing a positive return compared to the previous quarters. This could indicate potential improvements in the company's ability to generate profits using its total capital. It's important to monitor future trends to assess the sustainability of this positive trajectory.