Heritage Financial Corporation (HFWA)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.79 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 188.89 | 179.67 | 180.80 | 127.07 | 80.92 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | 1.02 | 4.54 | 0.69 | 0.26 | 0.17 | 0.16 | 0.17 | 0.22 | 0.24 | 0.28 | 0.35 | 0.50 | 1.44 | 1.07 | 1.07 | 1.92 | 2.50 |
Activity ratios help assess how efficiently a company manages its assets and liabilities. Looking at Heritage Financial Corp.'s activity ratios, we see the following trends:
1. Receivables Turnover: This ratio measures how many times a company collects its average accounts receivable during a period. Heritage Financial Corp. generally maintained a stable receivables turnover over the past eight quarters, ranging from 13.67 to 16.59. Higher turnover indicates that the company is collecting its receivables more quickly.
2. Working Capital Turnover: This ratio demonstrates how well a company utilizes its working capital to generate revenue. Heritage Financial Corp.'s working capital turnover ranged from 0.67 to 0.85 over the past eight quarters. A higher turnover signifies that the company effectively utilizes working capital to generate sales.
However, the data for inventory turnover and payables turnover is missing, which limits a comprehensive analysis of Heritage Financial Corp.'s complete activity efficiency. It would be beneficial for stakeholders to track these ratios consistently to assess the company's inventory management and payment practices.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 76.24 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.93 | 2.03 | 2.02 | 2.87 | 4.51 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Days of inventory on hand (DOH) for Heritage Financial Corp. is not provided in the dataset. The Days of Sales Outstanding (DSO) measures how long it takes for the company to collect payments from its customers. The trend for DSO over the past eight quarters shows consistent improvement from 26.71 days in Q3 2022 to 23.50 days in Q4 2023, indicating that the company is collecting payments more efficiently.
The number of days of payables is not available in the dataset, preventing a comprehensive analysis of the cash conversion cycle. However, the improvement in DSO suggests a potential positive impact on the working capital cycles, assuming that accounts payable management is also effective.
Overall, the decreasing trend in Days of Sales Outstanding reflects improved efficiency in the company's accounts receivable management, which can have a positive effect on working capital and cash flow for Heritage Financial Corp.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
The long-term activity ratios of Heritage Financial Corp., specifically the fixed asset turnover and total asset turnover, have shown a consistent trend over the past eight quarters. The fixed asset turnover, which measures how efficiently the company is utilizing its fixed assets to generate sales, has been gradually increasing from Q1 2022 to Q4 2023. This indicates that Heritage Financial Corp. has been improving its ability to generate revenue relative to its investment in fixed assets.
On the other hand, the total asset turnover, which reflects the company's overall efficiency in using all assets to generate sales, has remained relatively stable at a low level of around 0.04 for the past eight quarters. This suggests that while the company has been effectively utilizing its fixed assets, the overall efficiency of utilizing all assets to generate sales has not shown significant improvement.
Overall, the increasing trend in fixed asset turnover highlights Heritage Financial Corp.'s successful management of its fixed assets, but the low and stable total asset turnover indicates potential room for improvement in utilizing all assets more efficiently to drive revenue generation.