Heritage Financial Corporation (HFWA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 58,821 | 224,973 | 103,590 | 1,723,290 | 743,322 |
| Short-term investments | US$ in thousands | 764,394 | 1,134,350 | 1,331,440 | 894,335 | 802,163 |
| Total current liabilities | US$ in thousands | — | 142,542 | 5,315,490 | 5,453,400 | 4,698,960 |
| Cash ratio | — | 9.54 | 0.27 | 0.48 | 0.33 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($58,821K
+ $764,394K)
÷ $—K
= —
The cash ratio of Heritage Financial Corporation has fluctuated over the years according to the data provided.
- As of December 31, 2020, the cash ratio was 0.33, indicating that the company had $0.33 in cash and cash equivalents for every $1 of current liabilities. This level suggests that the company may have had some liquidity challenges at that time.
- By December 31, 2021, the cash ratio improved to 0.48, showing an increase in the company's ability to cover its short-term obligations with cash on hand.
- However, by December 31, 2022, the cash ratio decreased significantly to 0.27, signaling a potential decrease in liquidity and the company's ability to pay off its current liabilities with its available cash reserves.
- The cash ratio for December 31, 2023, spiked to 9.54, which seems unusually high and could indicate a significant increase in cash reserves compared to current liabilities. This may be due to various factors such as a large cash inflow from operations or a decrease in short-term liabilities.
- The data for December 31, 2024, shows an em dash (—) which may indicate missing or unavailable information for that period. Without this data point, it is challenging to provide a complete assessment of the trend in the company's cash ratio.
In conclusion, the trend in Heritage Financial Corporation's cash ratio shows fluctuations in its liquidity position over the years, with significant variations in its ability to cover short-term obligations with cash on hand. It is essential for the company to monitor its cash position closely to ensure it maintains a healthy level of liquidity to meet its short-term financial obligations.