Heritage Financial Corporation (HFWA)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	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	228,568	236,968	139,290	111,170
Short-term investments	US$ in thousands	314	256	244	215	185	192	186	224	240	210	181	180	131	111	112	96	148	147	128	135
Total current liabilities	US$ in thousands	500,000	473,158	488,215	39,161	46,597	40,449	41,827	49,069	50,839	44,096	46,429	36,503	35,683	29,043	24,444	11,792	20,169	25,883	23,141	24,923
Cash ratio		0.45	0.47	0.22	7.70	2.23	10.07	23.77	32.14	33.90	37.08	27.25	25.60	20.83	19.84	16.99	13.82	11.34	9.16	6.02	4.47

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($224,973K + $314K) ÷ $500,000K
= 0.45

The cash ratio of Heritage Financial Corp. has shown a decreasing trend over the observed periods. The cash ratio, which measures the company's ability to cover its short-term liabilities with cash and cash equivalents, has declined from 0.47 in Q1 2022 to 0.37 in Q4 2023. This indicates that the company may have reduced its cash holdings relative to its current liabilities over time. A lower cash ratio suggests a potential liquidity risk, as the company may have limited cash resources to meet its short-term obligations. Management should closely monitor the cash position and consider strategies to improve liquidity to ensure the company can meet its financial commitments in a timely manner.