Heritage Financial Corporation (HFWA)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 308,724 | 72,915 | 99,436 | 120,507 | 53,180 |
| Total assets | US$ in thousands | 7,106,280 | 7,174,960 | 6,980,100 | 7,432,410 | 6,615,320 |
| Operating ROA | 4.34% | 1.02% | 1.42% | 1.62% | 0.80% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $308,724K ÷ $7,106,280K
= 4.34%
Based on the data provided, Heritage Financial Corporation's operating return on assets (Operating ROA) has shown fluctuations over the years.
From December 31, 2020, to December 31, 2021, there was a significant increase in operating ROA from 0.80% to 1.62%, indicating improved efficiency in generating profits from its assets.
However, there was a slight decrease in the operating ROA from December 31, 2021, to December 31, 2022, dropping to 1.42%. This could potentially suggest that the company's profitability relative to its assets declined slightly during this period.
Moving forward, there was a further decrease in operating ROA from December 31, 2022, to December 31, 2023, down to 1.02%. This trend indicates that the company may have faced challenges in maintaining its profitability levels relative to its asset base.
However, by December 31, 2024, there was a significant spike in the operating ROA to 4.34%, indicating a substantial improvement in profitability efficiency, potentially through effective management strategies or increased revenue generation relative to its asset base.
Overall, Heritage Financial Corporation's operating ROA has demonstrated variability over the years, highlighting the importance of monitoring and analyzing this ratio to assess the company's operational performance and efficiency in utilizing its assets to generate profits.