Heritage Financial Corporation (HFWA)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 853,261 | 797,893 | 854,432 | 820,439 | 809,311 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $853,261K)
= 0.00
The debt-to-capital ratio for Heritage Financial Corp. has shown a notable increase over the years, rising from 0.02 in 2019 to 0.38 in 2023. This indicates a higher proportion of debt relative to the company's total capital structure.
The substantial increase in the debt-to-capital ratio from 2022 to 2023 suggests that Heritage Financial Corp. has significantly increased its debt levels or reduced its capital base during the period. This may be a cause for concern as higher debt levels can increase financial risk and interest expense for the company.
It is important for investors and analysts to closely monitor the trend in the debt-to-capital ratio for Heritage Financial Corp. to assess the company's leverage and financial health. A persistently high or increasing ratio may indicate a need for caution, while a decreasing ratio may signal improved financial stability.