Heritage Financial Corporation (HFWA)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 38,378 | 46,395 | 55,126 | 57,769 | 74,355 | 94,227 | 98,077 | 100,767 | 99,436 | 95,866 | 95,808 | 113,400 | 120,507 | 124,499 | 118,023 | 70,795 | 53,180 | 45,440 | 47,843 | 74,104 |
| Revenue (ttm) | US$ in thousands | 265,129 | 279,191 | 286,285 | 267,562 | 264,209 | 262,785 | 267,635 | 261,594 | 248,976 | 237,032 | 229,899 | 235,397 | 240,404 | 246,397 | 244,679 | 240,678 | 238,226 | 232,612 | 233,425 | 232,964 |
| Operating profit margin | 14.48% | 16.62% | 19.26% | 21.59% | 28.14% | 35.86% | 36.65% | 38.52% | 39.94% | 40.44% | 41.67% | 48.17% | 50.13% | 50.53% | 48.24% | 29.41% | 22.32% | 19.53% | 20.50% | 31.81% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $38,378K ÷ $265,129K
= 14.48%
The operating profit margin of Heritage Financial Corporation has demonstrated fluctuations over the reporting periods from March 31, 2020, to December 31, 2024.
The operating profit margin started at a relatively high level of 31.81% in March 31, 2020, but experienced a decline by June 30, 2020, to 20.50%. This downward trend continued into September 30, 2020, with a further decrease to 19.53%. However, there was a turnaround in the profitability performance by December 31, 2020, where the operating profit margin increased to 22.32%, indicating improved operational efficiency.
The company's profitability then saw a significant surge in the following quarters, reaching peak levels in June 30, 2021, with an operating profit margin of 48.24%. This positive momentum was sustained through September 30, 2021 (50.53%) and December 31, 2021 (50.13%).
Subsequently, there was a gradual decline in the operating profit margin from March 31, 2022, to December 31, 2023, with figures ranging between 48.17% and 28.14%. This drop may indicate increased costs or reduced revenue generation during this period.
The trend continued into the first half of 2024, with operating profit margins further decreasing from March 31, 2024 (21.59%) to December 31, 2024 (14.48%). The declining profitability during this period may raise concerns about the company's cost management or revenue generation strategies.
Overall, the analysis suggests that Heritage Financial Corporation experienced fluctuations in its operating profit margin over the analyzed period, with periods of both growth and decline. It is important for the company to continuously monitor and manage its operational efficiency and cost structure to ensure sustainable profitability in the future.