Heritage Financial Corporation (HFWA)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 228,568 | 236,968 | 139,290 | 111,170 |
| Short-term investments | US$ in thousands | 314 | 256 | 244 | 215 | 185 | 192 | 186 | 224 | 240 | 210 | 181 | 180 | 131 | 111 | 112 | 96 | 148 | 147 | 128 | 135 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 500,000 | 473,158 | 488,215 | 39,161 | 46,597 | 40,449 | 41,827 | 49,069 | 50,839 | 44,096 | 46,429 | 36,503 | 35,683 | 29,043 | 24,444 | 11,792 | 20,169 | 25,883 | 23,141 | 24,923 |
| Quick ratio | 0.45 | 0.47 | 0.22 | 7.70 | 2.23 | 10.07 | 23.77 | 32.14 | 33.90 | 37.08 | 27.25 | 25.60 | 20.83 | 19.84 | 16.99 | 13.82 | 11.34 | 9.16 | 6.02 | 4.47 |
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 been relatively stable over the past eight quarters, ranging from 0.38 to 0.47. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities, as its current assets may not be sufficient to cover its current liabilities.
In the case of Heritage Financial Corp., the quick ratio has consistently been below 1, with the lowest point of 0.38 occurring in Q4 2023, Q3 2023, and Q2 2023. This suggests that the company may have limited ability to cover its short-term obligations with its quick assets alone during these quarters.
It is important to further investigate the components of the quick ratio, such as cash, accounts receivable, and marketable securities, to gain a deeper understanding of the company's liquidity position and determine whether any actions need to be taken to improve its ability to meet short-term obligations.