Heritage Financial Corporation (HFWA)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $853,261K
= 0.00
The debt-to-equity ratio for Heritage Financial Corp. has exhibited varying trends over the past five years. In 2023, the ratio stands at 0.61, indicating that the company has a higher proportion of debt relative to equity in its capital structure, compared to previous years. This increase in the ratio may suggest that the company has taken on more debt to finance its operations or growth initiatives.
In 2022, the debt-to-equity ratio was notably low at 0.03, indicating a minimal level of debt compared to equity. The following years, 2021, 2020, and 2019, also reflected similarly low ratios of 0.02 and 0.03, suggesting a conservative approach to debt utilization by the company during those periods.
The significant jump in the debt-to-equity ratio in 2023 may prompt further investigation into the reasons behind the increased reliance on debt financing. It is crucial to assess whether this shift in the company's capital structure aligns with its strategic objectives and risk tolerance. Additionally, monitoring future trends in the debt-to-equity ratio will be essential in evaluating the company's financial leverage and overall stability.