Heritage Financial Corporation (HFWA)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 43,258 | 61,755 | 81,875 | 98,035 | 46,570 |
| Total assets | US$ in thousands | 7,106,280 | 7,174,960 | 6,980,100 | 7,432,410 | 6,615,320 |
| ROA | 0.61% | 0.86% | 1.17% | 1.32% | 0.70% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $43,258K ÷ $7,106,280K
= 0.61%
The return on assets (ROA) for Heritage Financial Corporation has shown a fluctuating trend over the past five years. In December 31, 2020, the ROA was recorded at 0.70%, indicating that the company generated 0.70 cents of profit for every dollar of assets. Subsequently, the ROA increased to 1.32% by December 31, 2021, reflecting improved asset utilization efficiency and profitability.
However, in the following years, there was a slight decline in the ROA. By December 31, 2022, the ROA decreased to 1.17%, and further dropped to 0.86% by December 31, 2023. This decline suggests a potential decrease in the company's ability to generate earnings from its assets efficiently.
By the end of December 31, 2024, the ROA further decreased to 0.61%, signaling a continued challenge in maximizing profitability from its asset base. It is essential for Heritage Financial Corporation to assess and address factors contributing to this declining trend in ROA to enhance overall financial performance and efficiency in asset utilization.