Heritage Financial Corporation (HFWA)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,106,280 | 7,174,960 | 6,980,100 | 7,432,410 | 6,615,320 |
| Total stockholders’ equity | US$ in thousands | 863,527 | 853,261 | 797,893 | 854,432 | 820,439 |
| Financial leverage ratio | 8.23 | 8.41 | 8.75 | 8.70 | 8.06 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,106,280K ÷ $863,527K
= 8.23
The financial leverage ratio of Heritage Financial Corporation has shown a slight upward trend over the past five years, increasing from 8.06 in 2020 to 8.23 in 2024. This indicates that the company relies more on debt financing relative to equity over the period. While there was a peak in 2022 at 8.75, the ratio decreased in the subsequent years. Overall, the company's financial leverage has fluctuated within a relatively narrow range, suggesting a stable capital structure despite some variations in debt levels. It is essential for stakeholders to monitor the trend in this ratio to assess the firm's risk profile and financial health.