Heritage Financial Corporation (HFWA)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 52,259 | 72,915 | 99,436 | 120,507 | 53,180 |
| Revenue | US$ in thousands | 309,712 | 239,538 | 248,976 | 240,404 | 238,226 |
| Pretax margin | 16.87% | 30.44% | 39.94% | 50.13% | 22.32% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $52,259K ÷ $309,712K
= 16.87%
The pretax margin of Heritage Financial Corporation has displayed fluctuations over the past five years. In 2020, the company's pretax margin was 22.32%, indicating that for every dollar of revenue generated, 22.32 cents were earned as pre-tax profit. This figure significantly improved to 50.13% by the end of 2021, suggesting a notable increase in profitability efficiency.
Subsequently, in 2022, the pretax margin slightly decreased to 39.94%, signaling a decline in the company's ability to convert revenue into pre-tax profit compared to the previous year. By the end of 2023, the pretax margin further dropped to 30.44%, indicating a continued decrease in profitability efficiency.
The most recent data available, as of December 31, 2024, reveals a pretax margin of 16.87%. This figure represents a significant decline from the previous year, highlighting a notable decrease in the company's ability to generate pre-tax profit relative to its revenue.
Overall, the analysis of Heritage Financial Corporation's pretax margin underscores the importance of monitoring and managing profitability ratios to ensure sustained financial performance and operational efficiency.