Heritage Financial Corporation (HFWA)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 265,129 | 279,191 | 286,285 | 267,562 | 264,209 | 262,785 | 267,635 | 261,594 | 248,976 | 237,032 | 229,899 | 235,397 | 240,404 | 246,397 | 244,679 | 240,678 | 238,226 | 232,612 | 233,425 | 232,964 |
| Total current assets | US$ in thousands | 881,494 | 930,847 | 133,612 | 209,545 | 244,491 | 1,386,840 | 1,403,900 | 1,638,100 | 1,453,580 | 1,781,280 | 2,197,550 | 2,631,230 | 2,632,280 | 2,411,070 | 2,331,570 | 1,847,320 | 1,564,900 | 1,429,620 | 1,312,820 | 1,138,940 |
| Total current liabilities | US$ in thousands | — | 4,320,260 | 4,688,800 | 4,808,110 | 4,418,940 | 4,982,630 | 5,111,010 | 5,236,510 | 5,315,490 | 5,343,340 | 5,406,750 | 5,560,690 | 5,453,400 | 5,286,460 | 5,140,040 | 124,080 | 54,589 | 104,616 | 119,280 | 138,454 |
| Working capital turnover | 0.30 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.14 | 0.16 | 0.18 | 0.20 | 0.23 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $265,129K ÷ ($881,494K – $—K)
= 0.30
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively using its current assets and liabilities to support sales.
Based on the data provided for Heritage Financial Corporation, the working capital turnover has fluctuated over the periods presented. In March 2020, the working capital turnover was 0.23, decreasing to 0.20 by June 2020, and further decreasing to 0.18 by September 2020. This decline suggests that the company may have been less efficient in utilizing its working capital to generate revenue during these periods.
The ratio continued to decrease, reaching 0.16 by December 2020 and further declining to 0.14 by March 2021. From December 2020 to March 2021, there was a significant drop in the working capital turnover, indicating potential challenges in managing working capital efficiently during this time.
Subsequently, the working capital turnover data is missing for the periods from June 2021 to March 2024, making it challenging to provide a complete trend analysis. However, the ratio reappeared at 0.30 by December 2024, showing a significant improvement in utilizing working capital to support revenue generation.
Overall, based on the available data, Heritage Financial Corporation experienced fluctuations in its working capital turnover, with periods of decreasing efficiency followed by a notable increase by December 2024. It is important for the company to monitor and manage its working capital effectively to ensure optimal utilization in driving revenue growth.