Heritage Financial Corporation (HFWA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 58,821 | 224,973 | 103,590 | 1,723,290 | 743,322 |
| Short-term investments | US$ in thousands | 764,394 | 1,134,350 | 1,331,440 | 894,335 | 802,163 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | — | 142,542 | 5,315,490 | 5,453,400 | 4,698,960 |
| Quick ratio | — | 9.54 | 0.27 | 0.48 | 0.33 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($58,821K
+ $764,394K
+ $—K)
÷ $—K
= —
The quick ratio of Heritage Financial Corporation has shown fluctuations over the years, starting at 0.33 on December 31, 2020, increasing to 0.48 on December 31, 2021, then dropping to 0.27 on December 31, 2022. This rapid fluctuation may indicate potential liquidity challenges or variations in the company's ability to meet its short-term obligations with its most liquid assets. The substantial increase to 9.54 on December 31, 2023, is quite unusual and signifies a significant improvement in short-term liquidity. However, the absence of data for December 31, 2024, makes it challenging to evaluate the current status of the quick ratio. Overall, it is crucial for Heritage Financial Corporation to maintain a stable and healthy quick ratio to ensure ongoing liquidity and financial stability.