Heritage Financial Corporation (HFWA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 117,100 | 175,572 | 113,757 | 189,647 | 224,973 | 220,503 | 108,378 | 301,481 | 103,590 | 407,324 | 994,055 | 1,576,720 | 1,723,290 | 1,634,740 | 1,264,930 | 934,316 | 743,322 | 576,242 | 415,075 | 162,913 |
| Short-term investments | US$ in thousands | 764,394 | 852,779 | 931,248 | 996,510 | 1,134,350 | 1,147,550 | 1,276,550 | 1,318,070 | 1,331,440 | 1,356,140 | 1,187,590 | 1,039,920 | 894,335 | 761,526 | 1,049,520 | 893,558 | 802,163 | 834,492 | 879,927 | 961,092 |
| 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 |
| Cash ratio | — | 0.24 | 0.22 | 0.25 | 0.31 | 0.27 | 0.27 | 0.31 | 0.27 | 0.33 | 0.40 | 0.47 | 0.48 | 0.45 | 0.45 | 14.73 | 28.31 | 13.48 | 10.86 | 8.12 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($117,100K
+ $764,394K)
÷ $—K
= —
The cash ratio of Heritage Financial Corporation has shown fluctuations over the periods provided in the data. The cash ratio represents a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover immediate obligations.
From March 31, 2020, to December 31, 2020, the cash ratio increased significantly from 8.12 to 28.31, indicating a substantial increase in the company's liquidity position. However, starting from March 31, 2021, the cash ratio experienced a sharp decline to 0.45 and remained consistently low throughout the following periods up to September 30, 2022.
The significant drop in the cash ratio suggests that Heritage Financial Corporation may have been utilizing its cash reserves for other purposes or experiencing challenges in generating sufficient cash flows to cover its short-term obligations. This could potentially indicate a liquidity strain or increased reliance on external financing sources.
Between March 31, 2023, and June 30, 2024, the cash ratio remained relatively stable in the range of 0.25 to 0.22, indicating a consistent, albeit low, level of liquidity. The absence of data for December 31, 2024, makes it challenging to provide a more current assessment of the company's cash ratio.
Overall, the varying trends in Heritage Financial Corporation's cash ratio highlight the importance of monitoring liquidity levels to ensure the company's ability to meet its short-term financial commitments.