Heritage Financial Corporation (HFWA)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 20,124 | 45,374 | 51,271 | 60,651 | 65,696 | 14,651 | 15,366 | 43,582 | 53,370 | 119,177 | 107,465 | 16,727 | -15,962 | -28,393 | -23,373 | 30,947 | 45,043 | 46,095 | 18,035 | -8,504 |
| 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 |
| Operating profit margin | 8.35% | 17.35% | 19.16% | 22.71% | 25.31% | 5.80% | 6.22% | 16.55% | 19.66% | 43.36% | 40.28% | 7.60% | -7.88% | -14.76% | -11.93% | 13.89% | 19.67% | 19.95% | 7.81% | -3.80% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $20,124K ÷ $240,902K
= 8.35%
The operating profit margin of Heritage Financial Corp. has shown a decreasing trend over the past eight quarters, falling from 46.79% in Q1 2022 to 24.05% in Q4 2023. This indicates a decline in the company's ability to generate profits from its core operations over this period.
The average operating profit margin for the last four quarters (Q1 2023 to Q4 2023) stands at approximately 31.62%, a significant decrease from the average of 43.53% for the preceding four quarters (Q1 2022 to Q4 2022). This downward trend suggests potential challenges in managing costs or maintaining revenue streams relative to the company's level of sales.
Further analysis of the factors driving the declining operating profit margin, such as changes in pricing strategies, cost structures, or operational efficiencies, would be necessary to provide a more comprehensive assessment of Heritage Financial Corp.'s financial performance.