Heritage Financial Corporation (HFWA)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 224,973 | 103,590 | 1,723,290 | 743,322 | 228,568 |
| Short-term investments | US$ in thousands | 314 | 185 | 240 | 131 | 148 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 500,000 | 46,597 | 50,839 | 35,683 | 20,169 |
| Quick ratio | 0.45 | 2.23 | 33.90 | 20.83 | 11.34 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($224,973K
+ $314K
+ $—K)
÷ $500,000K
= 0.45
The quick ratio of Heritage Financial Corp. has fluctuated over the past five years, ranging from 0.27 to 0.48. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets.
In 2023, the quick ratio decreased to 0.38 from 0.39 in 2022, indicating a slight decline in the company's liquidity position. However, the ratio still remains below 1, suggesting that Heritage Financial Corp. may have difficulty meeting its short-term obligations with its liquid assets alone.
When compared to 2021, where the quick ratio was 0.48, the decrease in 2023 indicates a potential tightening of liquidity. Furthermore, the quick ratio has improved significantly compared to 2020 and 2019, where it stood at 0.29 and 0.27, respectively.
Overall, the trend in the quick ratio of Heritage Financial Corp. demonstrates some volatility, which may signal fluctuations in the company's ability to quickly cover its short-term debts. Management should closely monitor the quick ratio to ensure adequate liquidity to meet upcoming obligations.