Heritage Financial Corporation (HFWA)
Net profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 61,755 | 78,066 | 80,837 | 82,575 | 81,875 | 78,728 | 78,330 | 92,448 | 98,035 | 102,520 | 98,564 | 59,723 | 46,570 | 39,814 | 41,073 | 63,196 | 67,557 | 67,040 | 64,649 | 60,522 |
| Revenue (ttm) | US$ in thousands | 240,902 | 261,588 | 267,624 | 267,038 | 259,556 | 252,619 | 247,108 | 263,310 | 271,408 | 274,840 | 266,804 | 220,033 | 202,681 | 192,376 | 195,892 | 222,867 | 229,009 | 231,013 | 230,880 | 223,672 |
| Net profit margin | 25.63% | 29.84% | 30.21% | 30.92% | 31.54% | 31.16% | 31.70% | 35.11% | 36.12% | 37.30% | 36.94% | 27.14% | 22.98% | 20.70% | 20.97% | 28.36% | 29.50% | 29.02% | 28.00% | 27.06% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $61,755K ÷ $240,902K
= 25.63%
The net profit margin of Heritage Financial Corp. has shown a declining trend over the past eight quarters, decreasing from 38.21% in Q1 2022 to 20.37% in Q4 2023. This suggests a decrease in the company's profitability relative to its revenue during this period. The most significant drop occurred between Q1 2023 and Q2 2023, where the net profit margin decreased by 2.49 percentage points. While the net profit margin has remained above 20% in all quarters, the consistent decline raises concerns about the company's ability to efficiently generate profits from its operations. Further analysis is recommended to identify the factors contributing to this downward trend and to implement appropriate strategies to improve profitability.