Heritage Financial Corporation (HFWA)
Total 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 |
| Total assets | US$ in thousands | 7,174,960 | 6,980,100 | 7,432,410 | 6,615,320 | 5,552,970 |
| Total asset turnover | 0.03 | 0.04 | 0.04 | 0.03 | 0.04 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $239,930K ÷ $7,174,960K
= 0.03
Heritage Financial Corp.'s total asset turnover has remained relatively stable over the past five years, fluctuating between 0.03 and 0.05. A total asset turnover ratio of 0.04 in 2023 indicates that the company generates $0.04 in revenue for every dollar of assets it holds. This suggests that Heritage Financial Corp. may not be effectively utilizing its assets to generate sales compared to prior years.
Although the ratio has remained fairly consistent, it is important for the company to assess its asset management strategies to improve efficiency and maximize revenue generation from its asset base. Further analysis and comparison with industry benchmarks may provide insight into potential areas for operational enhancement.