Heritage Financial Corporation (HFWA)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 308,724 | 72,915 | 99,436 | 120,507 | 53,180 |
| Revenue | US$ in thousands | 309,712 | 239,538 | 248,976 | 240,404 | 238,226 |
| Operating profit margin | 99.68% | 30.44% | 39.94% | 50.13% | 22.32% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $308,724K ÷ $309,712K
= 99.68%
Based on the data provided, Heritage Financial Corporation's operating profit margin has shown significant variability over the five-year period from December 31, 2020, to December 31, 2024.
The operating profit margin increased from 22.32% in December 2020 to 50.13% in December 2021, indicating a notable improvement in profitability. This substantial jump suggests that the company effectively managed its operating expenses relative to its revenue during that period.
However, in the following years, the operating profit margin displayed some fluctuation. It decreased to 39.94% by December 2022, suggesting a slight decline in the company's ability to control operating costs or generate higher revenues compared to the previous year.
By December 2023, the operating profit margin further declined to 30.44%, indicating potential challenges in maintaining profitability levels. Nonetheless, the operating profit margin surged significantly to 99.68% by December 2024, reflecting a remarkable improvement in cost management or revenue generation that boosted the company's profitability to a very high level.
Overall, the trend in Heritage Financial Corporation's operating profit margin underscores both strengths and areas for improvement in managing operating expenses and generating operational profits over the period under review.