Heritage Financial Corporation (HFWA)
Debt-to-equity 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-equity 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-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $853,261K
= 0.00
The debt-to-equity ratio of Heritage Financial Corp. has shown fluctuations over the past eight quarters. In Q4 2023 and Q3 2023, the ratio remained stable at 0.61, indicating that the company's debt level was 61% of its equity. Prior to that, in Q2 2023, the ratio slightly increased to 0.62. This suggests a slight increase in the proportion of debt relative to equity.
Comparing these recent figures to the earlier quarters, a significant spike in the debt-to-equity ratio is observed in Q1 2023, where it jumped to 0.49. This increase could indicate either a decrease in equity or an increase in debt, signifying potential changes in the company's capital structure.
In contrast, the debt-to-equity ratio was extremely low in the preceding quarters of 2022, consistently at 0.03. This could imply that the company had minimal debt compared to its equity during that period. The sudden shift from these low ratios to the higher ratios in 2023 raises questions about the company's recent financing decisions and its overall leverage position.
In conclusion, the fluctuating debt-to-equity ratios of Heritage Financial Corp. suggest varying levels of debt utilization and capital structure adjustments over the quarters. Further analysis of these changes in conjunction with other financial metrics would provide a more comprehensive understanding of the company's financial health and risk profile.