Heritage Financial Corporation (HFWA)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 72,915 | 99,436 | 120,507 | 53,180 | 81,045 |
| Revenue | US$ in thousands | 239,930 | 259,556 | 271,408 | 202,878 | 229,727 |
| Pretax margin | 30.39% | 38.31% | 44.40% | 26.21% | 35.28% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $72,915K ÷ $239,930K
= 30.39%
The pretax margin of Heritage Financial Corp. has exhibited some fluctuations over the past five years. In 2023, the pretax margin stands at 24.05%, representing a decrease from the previous year's level of 38.68%. Compared to 2021 where the pretax margin was at 48.70%, there has been a significant decline in profitability. The trend shows that in 2020, the pretax margin was at 21.14% before increasing to 32.38% in 2019. The fluctuations indicate potential volatility in the company's ability to generate profits before accounting for taxes, reflecting changes in revenue, expenses, and operational efficiency over the years. Further analysis into the underlying factors driving these fluctuations would be necessary to gain a comprehensive understanding of Heritage Financial Corp.'s financial performance.