Heritage Financial Corporation (HFWA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 36,913 | 36,913 | 46,353 | 50,653 | 68,708 | 96,597 | 100,848 | 102,526 | 98,816 | 91,863 | 86,316 | 96,885 | 105,564 | 112,939 | 110,918 | 70,795 | 53,180 | 45,440 | 47,843 | 74,104 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 863,527 | 874,514 | 850,507 | 847,580 | 853,261 | 813,546 | 819,733 | 826,082 | 797,893 | 776,702 | 805,366 | 821,449 | 854,432 | 848,404 | 855,984 | 827,151 | 820,439 | 803,129 | 793,652 | 798,438 |
| Return on total capital | 4.27% | 4.22% | 5.45% | 5.98% | 8.05% | 11.87% | 12.30% | 12.41% | 12.38% | 11.83% | 10.72% | 11.79% | 12.35% | 13.31% | 12.96% | 8.56% | 6.48% | 5.66% | 6.03% | 9.28% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $36,913K ÷ ($—K + $863,527K)
= 4.27%
The return on total capital of Heritage Financial Corporation has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 4.22% on September 30, 2024, to a high of 13.31% on September 30, 2021.
The return on total capital decreased significantly from the peak in September 2021 to the lows in March and June 2024, indicating a possible decline in the company's efficiency in generating returns from its total capital. However, there was a slight improvement from March 31, 2024, to December 31, 2024.
Overall, Heritage Financial Corporation's return on total capital is subject to fluctuations, suggesting varying levels of profitability and capital utilization efficiency during the period under review. Further analysis of the company's financial performance and capital structure may help in understanding the factors driving these changes in the return on total capital ratio.