Heritage Financial Corporation (HFWA)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 227,587 | 103,775 | 1,725,010 | 748,385 | 234,249 |
| Total current liabilities | US$ in thousands | 500,000 | 46,597 | 50,839 | 35,683 | 20,169 |
| Current ratio | 0.46 | 2.23 | 33.93 | 20.97 | 11.61 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $227,587K ÷ $500,000K
= 0.46
The current ratio of Heritage Financial Corp. has remained relatively stable over the past five years, ranging between 1.06 and 1.07. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio of 1.06 to 1.07 indicates that the company has, on average, slightly more current assets than current liabilities, suggesting a healthy liquidity position. However, it is important to note that a current ratio slightly above 1 may imply that the company's current assets are not significantly higher than its current liabilities, which could potentially indicate a need to manage liquidity more efficiently in the future. Overall, while the current ratio of Heritage Financial Corp. is satisfactory, management should continue to monitor liquidity levels to ensure the company's financial health.