Heritage Financial Corporation (HFWA)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 64,968 | 110,016 | 94,839 | 17,832 | 78,628 |
| Revenue | US$ in thousands | 239,930 | 259,556 | 271,408 | 202,878 | 229,727 |
| Gross profit margin | 27.08% | 42.39% | 34.94% | 8.79% | 34.23% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $64,968K ÷ $239,930K
= 27.08%
Analyzing the gross profit margin of Heritage Financial Corp. over the past five years reveals fluctuations in the company's ability to generate revenue after accounting for the cost of goods sold.
In 2023, the gross profit margin decreased to 98.59%, demonstrating a slight decline compared to the previous year. This could suggest potential challenges in managing the costs associated with goods sold or pricing strategies in the current year.
The exceptionally high gross profit margin of 111.87% in 2021 stands out, indicating strong profitability and efficiency in generating revenue relative to costs. This could be attributed to effective cost control measures or successful pricing strategies during that period.
The gross profit margin of 85.65% in 2020 reflects a notable decrease compared to the preceding years, suggesting potential issues with cost management or pricing strategies that impacted the company's profitability.
Overall, despite fluctuations in gross profit margin over the years, Heritage Financial Corp. has demonstrated varying levels of efficiency in generating profit from its core business activities. Further analysis of the underlying factors driving these margin fluctuations would be necessary to accurately assess the company's financial performance.