Heritage Financial Corporation (HFWA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.79% | 34.74% | 36.25% | 39.77% | 42.39% | 21.69% | 22.80% | 32.15% | 34.94% | 55.65% | 52.53% | 22.79% | 8.70% | 2.71% | 5.26% | 28.72% | 34.02% | 34.18% | 32.64% | 31.12% |
| 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% |
| Pretax margin | 30.27% | 36.02% | 36.65% | 37.74% | 38.31% | 37.95% | 38.77% | 43.07% | 44.40% | 45.30% | 44.24% | 32.17% | 26.24% | 23.62% | 24.42% | 33.25% | 35.39% | 35.40% | 34.18% | 32.90% |
| Net profit margin | 25.63% | 29.84% | 30.21% | 30.92% | 31.54% | 31.16% | 31.70% | 35.11% | 36.12% | 37.30% | 36.94% | 27.14% | 22.98% | 20.70% | 20.97% | 28.36% | 29.50% | 29.02% | 28.00% | 27.06% |
The profitability ratios of Heritage Financial Corp. have shown some fluctuations over the past eight quarters. The gross profit margin has been relatively stable, ranging from 97.59% to 100.55% in the last two years. This indicates that the company has been able to maintain a high level of profitability after accounting for the cost of goods sold.
The operating profit margin has displayed more variability, decreasing from 46.79% in Q1 2022 to 24.05% in Q4 2023. This suggests that the company's operating expenses have increased relative to its revenue, impacting its profitability at the operational level.
Similarly, the pretax margin has also fluctuated, with a downward trend from 46.87% in Q1 2022 to 24.05% in Q4 2023. This indicates that the company's profitability before accounting for taxes has decreased over time.
The net profit margin, which reflects the company's bottom line profitability after all expenses, has also shown a declining trend, falling from 38.21% in Q1 2022 to 20.37% in Q4 2023. This suggests that the company's overall profitability has been under pressure, possibly due to increasing costs or other operational challenges.
Overall, Heritage Financial Corp. has experienced fluctuations in its profitability ratios, with a general trend of declining margins over the past eight quarters. It may be important for the company to closely monitor its expenses and revenue streams to enhance its overall profitability in the future.
Return on investment
| 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 return on assets (Operating ROA) | 0.28% | 0.63% | 0.72% | 0.84% | 0.94% | 0.20% | 0.21% | 0.58% | 0.72% | 1.64% | 1.51% | 0.24% | -0.24% | -0.42% | -0.36% | 0.55% | 0.81% | 0.84% | 0.34% | -0.16% |
| Return on assets (ROA) | 0.86% | 1.09% | 1.14% | 1.14% | 1.17% | 1.09% | 1.07% | 1.24% | 1.32% | 1.41% | 1.39% | 0.85% | 0.70% | 0.60% | 0.63% | 1.13% | 1.22% | 1.22% | 1.20% | 1.13% |
| Return on total capital | 15.50% | 16.72% | 15.11% | 13.80% | 13.47% | 13.22% | 12.73% | 14.63% | 14.93% | 15.57% | 14.82% | 9.86% | 8.11% | 7.64% | 8.26% | 11.62% | 12.26% | 12.28% | 11.89% | 11.26% |
| Return on equity (ROE) | 7.24% | 9.60% | 9.86% | 10.00% | 10.26% | 10.14% | 9.73% | 11.25% | 11.47% | 12.08% | 11.51% | 7.22% | 5.68% | 4.96% | 5.18% | 7.91% | 8.35% | 8.34% | 8.12% | 7.78% |
Heritage Financial Corp.'s profitability ratios indicate a stable financial performance over the last eight quarters.
Operating return on assets (Operating ROA) has shown some fluctuation, ranging from 1.02% to 1.42%, with a slight decrease in recent quarters. This ratio reflects the company's operating efficiency in generating profits from its assets.
Return on assets (ROA) has also varied, with values between 0.86% and 1.17%. This ratio indicates the company's overall ability to generate profit from its total assets, showing a somewhat declining trend in recent quarters.
Return on total capital has fluctuated significantly, ranging from 5.30% to 13.43%. This ratio measures the return generated on the company's total invested capital, including both debt and equity. The decreasing trend in recent quarters might suggest the company is facing challenges in generating returns on the total capital employed.
Return on equity (ROE) has demonstrated a stable trend between 7.24% and 11.25%, reflecting the return generated on shareholders' equity. Although ROE has remained comparatively consistent, it has shown a slight decrease in recent quarters, indicating potential challenges in maximizing returns for equity holders.
Overall, while Heritage Financial Corp. has maintained a relatively stable profitability performance over the period, the declining trend in certain ratios might warrant further investigation into the company's operational efficiency and capital utilization strategies.