Heritage Financial Corporation (HFWA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 863,527 | 853,261 | 797,893 | 854,432 | 820,439 |
| ROE | 5.01% | 7.24% | 10.26% | 11.47% | 5.68% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $43,258K ÷ $863,527K
= 5.01%
The Return on Equity (ROE) for Heritage Financial Corporation has displayed fluctuations over the past few years. As of December 31, 2020, the company's ROE stood at 5.68%, showing a moderate level of profitability generated from shareholders' equity.
By December 31, 2021, the ROE increased significantly to 11.47%, indicating improved performance in utilizing shareholder funds to generate profits. This substantial rise may suggest more efficient management of the company's assets and liabilities.
In the following year, as of December 31, 2022, the ROE slightly decreased to 10.26%, although it remained at a relatively high level compared to the initial period. This suggests that while the company's profitability slightly dipped, it continued to generate favorable returns for its shareholders.
The ROE then saw a further decline by December 31, 2023, dropping to 7.24%. This reduction may indicate potential challenges in maintaining previous levels of profitability or in managing the company's equity effectively.
As of December 31, 2024, the ROE decreased even further to 5.01%, marking a significant decline from the previous years. This lower ROE could imply decreased profitability and efficiency in utilizing shareholders' equity during the period.
In summary, Heritage Financial Corporation's ROE has experienced fluctuations, with periods of improvement and decline. It is essential for the company to assess the factors influencing these changes and implement strategies to enhance profitability and ensure optimal utilization of shareholders' equity in the future.