Heritage Financial Corporation (HFWA)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 61,755 | 78,066 | 80,837 | 82,575 | 81,875 | 78,728 | 78,330 | 92,448 | 98,035 | 102,520 | 98,564 | 59,723 | 46,570 | 39,814 | 41,073 | 63,196 | 67,557 | 67,040 | 64,649 | 60,522 |
| Total assets | US$ in thousands | 7,174,960 | 7,150,590 | 7,115,410 | 7,236,810 | 6,980,100 | 7,200,310 | 7,316,470 | 7,483,810 | 7,432,410 | 7,259,040 | 7,105,670 | 7,028,390 | 6,615,320 | 6,685,890 | 6,562,360 | 5,587,300 | 5,552,970 | 5,515,180 | 5,376,690 | 5,342,100 |
| ROA | 0.86% | 1.09% | 1.14% | 1.14% | 1.17% | 1.09% | 1.07% | 1.24% | 1.32% | 1.41% | 1.39% | 0.85% | 0.70% | 0.60% | 0.63% | 1.13% | 1.22% | 1.22% | 1.20% | 1.13% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $61,755K ÷ $7,174,960K
= 0.86%
To analyze Heritage Financial Corp.'s return on assets (ROA) based on the provided data, we observe a fluctuating trend over the past eight quarters.
In Q4 2023, the ROA stood at 0.86%, which was lower compared to the previous quarter. This decrease may indicate a decrease in the company's efficiency in generating profits from its assets during this period.
The ROA rose to 1.09% in Q3 2023, showing an improvement in asset utilization compared to the preceding quarter. However, this increase was not sustained as in the subsequent quarter, Q2 2023, the ROA decreased to 1.14%.
Maintaining the same level in Q1 2023 at 1.14%, the company demonstrated consistent asset performance. Looking back at Q4 2022, the ROA was slightly higher at 1.17%, indicating better asset utilization at that time.
Q3 and Q2 of 2022 showed consistent ROA figures at 1.09% and 1.07% respectively, with a spike to 1.24% in Q1 2022, signaling improved asset efficiency during that quarter.
In conclusion, although there have been fluctuations in Heritage Financial Corp.'s ROA over the past eight quarters, the company has generally maintained a reasonable level of asset efficiency. Further analysis would be needed to understand the factors contributing to the fluctuating trend in ROA and assess the company's overall financial performance and sustainability.