HealthEquity Inc (HQY)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 165,738 | 166,946 | 181,953 | 150,520 | 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 |
| Long-term debt | US$ in thousands | 1,056,300 | 1,081,040 | 1,101,400 | 925,675 | 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 |
| 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 |
| Return on total capital | 5.23% | 5.21% | 5.58% | 4.98% | 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% |
January 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $165,738K ÷ ($1,056,300K + $2,114,910K)
= 5.23%
HealthEquity Inc's return on total capital has shown fluctuations over the specified period. The company's return on total capital was relatively stable around 1-2% from April 2020 to July 2021. However, from October 2021 to April 2022, the return on total capital turned negative, indicating that the company's capital was not generating positive returns during this period.
From January 2023 onwards, there was a notable improvement in the return on total capital, with the percentage gradually increasing to reach 5.23% by January 2025. This upward trend indicates that HealthEquity Inc has been able to enhance the efficiency of its capital utilization and generate higher returns for its capital providers over the latter part of the analyzed period.
Overall, the company's return on total capital has experienced periods of both positive and negative returns, suggesting varying levels of capital efficiency and profitability. The recent trend of increasing returns reflects positively on the company's ability to generate higher returns on the total capital employed in its operations.
Peer comparison
Jan 31, 2025