Heritage Financial Corporation (HFWA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.06 | 0.22 | — | — | — |
Based on the provided data for Heritage Financial Corporation, it appears that the company did not have information available for Inventory turnover, Receivables turnover, Payables turnover, and Working capital turnover for the years up to 2023.
However, looking at the available data for Working Capital Turnover, we observe that the turnover ratio has improved over the two years presented. The Working Capital Turnover Ratio is a measure of how effectively a company generates revenue relative to its working capital. In this case, the ratio increased from 0.22 in 2023 to 0.06 in 2024.
A higher Working Capital Turnover ratio indicates that the company is generating more revenue per unit of working capital, which is a positive sign of efficiency in utilizing the working capital to drive sales. It suggests that the company has become more efficient in generating revenue with the capital at its disposal in 2024 compared to 2023.
It would be beneficial to monitor this trend over the coming years to assess the company's ongoing operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, Heritage Financial Corporation's activity ratios for Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables have been denoted as "— days" for each year from 2020 to 2024.
Since these ratios are not provided, it is challenging to assess the efficiency of Heritage Financial Corporation's inventory management, accounts receivable collection, and accounts payable management over the specified years.
Typically, a lower Days of Inventory on Hand (DOH) ratio indicates effective inventory management, a lower Days of Sales Outstanding (DSO) ratio signifies efficient collection of accounts receivable, and a higher Number of Days of Payables ratio suggests a longer time taken to pay suppliers, potentially benefiting the company by allowing for extended payment terms.
Without specific values for these ratios, a detailed analysis of Heritage Financial Corporation's activity ratios cannot be conducted, and it's essential to have these figures to better understand the company's operational efficiency and working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.24 | 3.03 | 2.79 |
| Total asset turnover | 0.04 | 0.03 | 0.04 | 0.03 | 0.04 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue over an extended period. In the case of Heritage Financial Corporation, we will analyze two key ratios: Fixed Asset Turnover and Total Asset Turnover, based on the provided data.
1. Fixed Asset Turnover:
- In 2020, the Fixed Asset Turnover ratio was 2.79, indicating that for every dollar invested in fixed assets, the company generated $2.79 in revenue.
- By 2021, this ratio improved to 3.03, signaling an increase in efficiency in utilizing fixed assets to generate revenue.
- The trend continued with a further increase to 3.24 in 2022, reflecting a more efficient utilization of fixed assets.
- However, the data for 2023 and 2024 is not available (denoted as "—"), limiting a comprehensive analysis for those years.
2. Total Asset Turnover:
- In 2020, the Total Asset Turnover ratio was 0.04, indicating that the company generated $0.04 in revenue for each dollar of total assets.
- The ratio declined to 0.03 in 2021, suggesting a decrease in the efficiency of utilizing total assets to generate revenue.
- There was a slight improvement in 2022, with the ratio increasing to 0.04, indicating a better utilization of total assets during that year.
- The ratio remained at 0.03 in 2023 and increased back to 0.04 in 2024, showing fluctuations in the efficiency of total asset utilization.
In summary, the Fixed Asset Turnover ratio has shown a consistent improvement from 2020 to 2022, indicating increased efficiency in utilizing fixed assets to generate revenue. However, the trend could not be evaluated for 2023 and 2024 due to missing data. On the other hand, the Total Asset Turnover ratio fluctuated over the years, with some years showing a decline in efficiency. Additional data and context would be needed to provide a more detailed analysis of the long-term activity efficiency of Heritage Financial Corporation.