Heritage Financial Corporation (HFWA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 239,930 | 259,556 | 271,408 | 202,878 | 229,727 |
| Property, plant and equipment | US$ in thousands | 74,899 | 76,930 | 79,370 | 85,452 | 87,888 |
| Fixed asset turnover | 3.20 | 3.37 | 3.42 | 2.37 | 2.61 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $239,930K ÷ $74,899K
= 3.20
The fixed asset turnover ratio for Heritage Financial Corp. has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of utilizing fixed assets to generate revenue. The ratio has increased from 2.85 in 2019 to 4.05 in 2023, reflecting the company's ability to generate $4.05 in sales for every dollar invested in fixed assets at the end of 2023. This suggests that the company has been able to effectively maximize the revenue generated from its fixed assets, which is a positive sign for shareholders and potential investors. Overall, the upward trend in fixed asset turnover demonstrates improved operational efficiency and effective utilization of the company's fixed asset base over the years.