Heritage Financial Corporation (HFWA)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 240,902 | 261,588 | 267,624 | 267,038 | 259,556 | 252,619 | 247,108 | 263,310 | 271,408 | 274,840 | 266,804 | 220,033 | 202,681 | 192,376 | 195,892 | 222,867 | 229,009 | 231,013 | 230,880 | 223,672 |
| Property, plant and equipment | US$ in thousands | 74,899 | 76,436 | 79,401 | 80,094 | 76,930 | 76,683 | 77,164 | 78,737 | 79,370 | 79,958 | 82,835 | 84,533 | 85,452 | 89,831 | 86,897 | 87,958 | 87,888 | 86,563 | 84,296 | 80,130 |
| Fixed asset turnover | 3.22 | 3.42 | 3.37 | 3.33 | 3.37 | 3.29 | 3.20 | 3.34 | 3.42 | 3.44 | 3.22 | 2.60 | 2.37 | 2.14 | 2.25 | 2.53 | 2.61 | 2.67 | 2.74 | 2.79 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $240,902K ÷ $74,899K
= 3.22
The fixed asset turnover ratio for Heritage Financial Corp. has shown a consistent upward trend over the past eight quarters, reaching 4.05 in Q4 2023 from 3.07 in Q1 2022. This indicates that the company is generating more revenue relative to its investment in fixed assets each quarter. Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate sales revenue.
The improvement in the fixed asset turnover ratio suggests that Heritage Financial Corp. has been effectively managing its fixed assets to generate higher levels of sales. A higher ratio indicates that the company is generating more revenue for each dollar invested in fixed assets. This can be a positive sign of operational efficiency and effective asset utilization.
Overall, the increasing trend in fixed asset turnover ratios for Heritage Financial Corp. reflects a positive performance in terms of utilizing its fixed assets to drive revenue growth. It indicates that the company is effectively managing and leveraging its fixed assets to generate sales, which can contribute to improving profitability and overall financial performance.