Heritage Financial Corporation (HFWA)
Working capital 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 current assets | US$ in thousands | 227,587 | 103,775 | 1,725,010 | 748,385 | 234,249 |
| Total current liabilities | US$ in thousands | 500,000 | 46,597 | 50,839 | 35,683 | 20,169 |
| Working capital turnover | — | 4.54 | 0.16 | 0.28 | 1.07 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $239,930K ÷ ($227,587K – $500,000K)
= —
The working capital turnover ratio of Heritage Financial Corp. has been relatively consistent over the past five years, ranging from 0.62 to 0.75. This ratio indicates the company's ability to efficiently utilize its working capital to generate sales revenue. A higher ratio is generally favorable as it suggests that the company is effectively managing its working capital to support its sales activities.
Based on the trend observed, the working capital turnover ratio has remained relatively stable, indicating a consistent level of efficiency in converting working capital into sales. However, it is important to note that the ratio has not shown significant improvement over the years, which may warrant further investigation into the company's working capital management practices.
Overall, Heritage Financial Corp.'s working capital turnover ratio suggests a moderate level of efficiency in utilizing its working capital to generate sales, but there may be opportunities for the company to enhance its working capital management strategies to potentially improve this ratio in the future.