Heritage Financial Corporation (HFWA)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 19,152 | 65,696 | 51,209 | -27,429 | 35,186 |
| Revenue | US$ in thousands | 239,930 | 259,556 | 271,408 | 202,878 | 229,727 |
| Operating profit margin | 7.98% | 25.31% | 18.87% | -13.52% | 15.32% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $19,152K ÷ $239,930K
= 7.98%
The operating profit margin of Heritage Financial Corp. has shown fluctuations over the past five years. In 2021, the company achieved a high operating profit margin of 48.70%, indicating strong operational efficiency and effective cost management. However, in 2020, the margin decreased to 21.14%, possibly due to increased operating expenses or a decline in revenue.
The operating profit margin rebounded in 2022 to 38.68%, suggesting improved profitability, but it declined again to 24.05% in 2023. This decrease may be attributed to various factors such as pricing pressures, higher costs, or changes in the business environment.
Overall, Heritage Financial Corp. has demonstrated variability in its operating profit margin performance, highlighting the importance of closely monitoring operational efficiency and profitability drivers to sustain and enhance financial performance.