Heritage Financial Corporation (HFWA)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 61,755 | 81,875 | 98,035 | 46,570 | 67,557 |
| Total assets | US$ in thousands | 7,174,960 | 6,980,100 | 7,432,410 | 6,615,320 | 5,552,970 |
| ROA | 0.86% | 1.17% | 1.32% | 0.70% | 1.22% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $61,755K ÷ $7,174,960K
= 0.86%
The return on assets (ROA) for Heritage Financial Corp. has fluctuated over the past five years as indicated in the table provided. In 2023, the ROA stands at 0.86%, a decrease from the previous year's figure of 1.17%. The trend shows a gradual decline in ROA from 1.32% in 2021 to 0.70% in 2020 before experiencing a slight increase to 1.22% in 2019.
The ROA measures the company's efficiency in generating profits from its assets. A lower ROA in 2023 compared to the prior year may suggest a reduced ability to generate earnings relative to its asset base. Further analysis is required to understand the factors contributing to this decline and to assess the company's overall financial performance and asset utilization efficiency.