The historical rank and industry rank for HealthEquity's Gross Margin % or its related term are showing as below:
HQY'
s Gross Margin % Range Over the Past 10 Years
Min: 54.6 Med: 58.02 Max: 63.08
Current: 62.29
During the past 12 years, the highestGross Margin % of HealthEquity was 63.08%. The lowest was 54.60%. And the median was 58.02%.
HQY's Gross Margin % is ranked better than 70.94% of 609
companies
in the Healthcare Providers & Services industry
Industry Median: 41.53
vs HQY: 62.29
HealthEquity had a gross margin of 63.06% for the quarter that ended in Jan. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for HealthEquity was -0.80% per year.
HealthEquity Gross Margin % Historical Data
The historical data trend for HealthEquity's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of HealthEquity's Gross Margin %
For the Health Information Services subindustry, HealthEquity's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HealthEquity's Gross Margin % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HealthEquity's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HealthEquity's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
HealthEquity (NAS:HQY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
HealthEquity had a gross margin of 63.06% for the quarter that ended in Jan. 2024 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
HealthEquity Gross Margin % Related Terms
Thank you for viewing the detailed overview of HealthEquity's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
HealthEquity Inc provides solutions that allow consumers to make healthcare saving and spending decisions. Its technology allows customers to see their tax-advantaged healthcare savings, compare treatment options and pricing, pay healthcare bills, receive benefit information, and earn wellness incentives. The firm primarily partners with health plans and employers and serves as the custodian of its customers' health savings accounts (HSAs). HealthEquity also engages in reimbursement arrangements and offers healthcare incentives to its members. In addition, the company provides investment advisory services to customers whose account balances exceed a certain threshold. HealthEquity generates its revenue in the United States.
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