Heritage Financial Corporation (HFWA)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 881,494 | 930,847 | 133,612 | 209,545 | 244,491 | 1,386,840 | 1,403,900 | 1,638,100 | 1,453,580 | 1,781,280 | 2,197,550 | 2,631,230 | 2,632,280 | 2,411,070 | 2,331,570 | 1,847,320 | 1,564,900 | 1,429,620 | 1,312,820 | 1,138,940 |
| 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 |
| Current ratio | — | 0.22 | 0.03 | 0.04 | 0.06 | 0.28 | 0.27 | 0.31 | 0.27 | 0.33 | 0.41 | 0.47 | 0.48 | 0.46 | 0.45 | 14.89 | 28.67 | 13.67 | 11.01 | 8.23 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $881,494K ÷ $—K
= —
The current ratio of Heritage Financial Corporation has shown significant fluctuations over the analyzed period. It started at a very high level of 8.23 as of March 31, 2020, indicating strong short-term liquidity position. The ratio increased further to 11.01 by June 30, 2020, and continued to rise steadily, reaching a peak of 28.67 as of December 31, 2020.
However, from March 31, 2021 onwards, there was a sudden and substantial decline in the current ratio, dropping to 0.45 by June 30, 2021. This significant decrease suggests a potential strain on the company's ability to meet its short-term obligations with its current assets.
The trend of decreasing current ratio continued throughout the following quarters, remaining below 1, which is considered a red flag for potential liquidity issues. The ratio fluctuated between 0.27 to 0.48 from December 31, 2021 to March 31, 2024, indicating a persistent challenge in managing short-term liquidity.
As of December 31, 2024, the current ratio data is not available, which may imply that the company is facing challenges or undergoing significant changes that impact its liquidity position. Overall, the downward trend in the current ratio signals potential financial difficulties or inefficiencies in managing current assets and liabilities at Heritage Financial Corporation.