Heritage Financial Corporation (HFWA)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 117,100 | 175,572 | 113,757 | 189,647 | 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 |
| Short-term investments | US$ in thousands | 764,394 | 852,779 | 931,248 | 996,510 | 1,134,350 | 1,147,550 | 1,276,550 | 1,318,070 | 1,331,440 | 1,356,140 | 1,187,590 | 1,039,920 | 894,335 | 761,526 | 1,049,520 | 893,558 | 802,163 | 834,492 | 879,927 | 961,092 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | — | 0.24 | 0.22 | 0.25 | 0.31 | 0.27 | 0.27 | 0.31 | 0.27 | 0.33 | 0.40 | 0.47 | 0.48 | 0.45 | 0.45 | 14.73 | 28.31 | 13.48 | 10.86 | 8.12 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($117,100K
+ $764,394K
+ $—K)
÷ $—K
= —
The quick ratio of Heritage Financial Corporation has been fluctuating over the years, indicating changes in the company's liquidity position. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, started at a high level of 8.12 on March 31, 2020, showing a strong liquidity position during that period.
Subsequently, the quick ratio increased significantly to 28.31 on December 31, 2020, reflecting a substantial improvement in the company's ability to cover its current liabilities with its liquid assets. However, the quick ratio saw a sharp decline in the following quarters, dropping to 0.45 by June 30, 2021, and maintaining a similar level through September 30, 2021, which may indicate a potential liquidity concern.
The company's quick ratio continued to fluctuate between 0.40 and 0.33 from June 30, 2022, to September 30, 2022, suggesting ongoing challenges in managing short-term liquidity. The quick ratio further decreased to 0.27 by December 31, 2022, indicating a deterioration in the company's ability to quickly meet its short-term obligations.
Throughout the subsequent quarters, the quick ratio remained relatively stable around 0.27 to 0.31 from March 31, 2023, to March 31, 2024. This consistent level may suggest that the company has maintained a consistent liquidity position during this period.
The absence of quick ratio data on December 31, 2024, may be due to missing or incomplete information. In conclusion, the analysis of Heritage Financial Corporation's quick ratio highlights fluctuations in its liquidity position over the years, with periods of both strength and potential challenges in meeting short-term obligations.