Heritage Financial Corporation (HFWA)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 809,311 | 804,127 | 796,625 | 778,191 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 remained relatively consistent at 0.38 in Q4, Q3, and Q2 of 2023. This indicates that approximately 38% of the company's capital structure is comprised of debt. Prior to this, in Q1 2023, the ratio was slightly lower at 0.33, suggesting a smaller proportion of debt in the capital structure.
A significant change in the debt-to-capital ratio occurred between Q4 2022 and Q1 2023, where the ratio jumped from 0.03 to 0.33. This substantial increase in debt relative to capital could signal a shift in the company's financing strategy during that period.
When comparing the latest data to the same quarter in the previous year (Q4 2022), the debt-to-capital ratio has increased from 0.03 to 0.38. This indicates a significant rise in the company's reliance on debt to fund its operations or growth initiatives over the past year.
Overall, the trend in Heritage Financial Corp.'s debt-to-capital ratio suggests a relatively stable level of debt utilization in recent quarters, with a notable increase compared to the previous year. Investors and stakeholders may monitor this ratio to assess the company's financial risk and leverage position.