Heritage Financial Corporation (HFWA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 853,261 | 797,893 | 854,432 | 820,439 | 809,311 |
| ROE | 7.24% | 10.26% | 11.47% | 5.68% | 8.35% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $61,755K ÷ $853,261K
= 7.24%
The return on equity (ROE) for Heritage Financial Corp. has fluctuated over the past five years, ranging from 5.68% in 2020 to 11.47% in 2021. The ROE decreased to 7.24% in 2023 from 10.26% in 2022. This indicates that the company's profitability in generating returns for its shareholders has shown some variability in recent years. A lower ROE in 2023 compared to previous years suggests that the company may be facing challenges in efficiently utilizing its equity to generate profits. Further analysis of the company's financial performance and strategies may be warranted to understand the factors influencing these fluctuations in ROE.