Heritage Financial Corporation (HFWA)
Cash conversion cycle
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | — | — | — | — | — |
Days of sales outstanding (DSO) | days | — | — | — | — | — |
Number of days of payables | days | — | — | — | — | — |
Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Heritage Financial Corp. has shown fluctuations over the past five years. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
In 2023, the cash conversion cycle decreased to 23.50 days from 26.34 days in 2022, indicating an improvement in the company's efficiency in managing its working capital. This decrease suggests that Heritage Financial Corp. was able to enhance its liquidity position and generate cash from its operations more effectively compared to the previous year.
In 2021, the cash conversion cycle was at its lowest at 21.62 days over the five-year period. This implies that the company was able to quickly convert its investments into cash, which is a positive sign of effective working capital management and operational efficiency.
On the other hand, in 2020, the cash conversion cycle increased to 28.18 days from 21.62 days in 2021, showing a deterioration in the company's ability to convert its resources into cash efficiently. This increase may indicate challenges in managing working capital effectively during that period.
Overall, Heritage Financial Corp.'s cash conversion cycle has shown variability over the past five years, with fluctuations reflecting changes in the company's working capital management practices and operational efficiency. Monitoring this metric can provide insights into the company's liquidity position and efficiency in generating cash flow from its operations.