Heritage Financial Corporation (HFWA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,174,960 | 7,150,590 | 7,115,410 | 7,236,810 | 6,980,100 | 7,200,310 | 7,316,470 | 7,483,810 | 7,432,410 | 7,259,040 | 7,105,670 | 7,028,390 | 6,615,320 | 6,685,890 | 6,562,360 | 5,587,300 | 5,552,970 | 5,515,180 | 5,376,690 | 5,342,100 |
| 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 |
| Financial leverage ratio | 8.41 | 8.79 | 8.68 | 8.76 | 8.75 | 9.27 | 9.08 | 9.11 | 8.70 | 8.56 | 8.30 | 8.50 | 8.06 | 8.32 | 8.27 | 7.00 | 6.86 | 6.86 | 6.75 | 6.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,174,960K ÷ $853,261K
= 8.41
The financial leverage ratio of Heritage Financial Corp. has been relatively stable over the past eight quarters, ranging from 8.41 to 9.27. The ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher ratio indicates higher financial leverage or debt levels.
In this case, the company's financial leverage ratio has shown a slight decrease in the most recent quarter, Q4 2023, compared to the previous quarter. This suggests that the company may have reduced its reliance on debt financing during this period.
Overall, Heritage Financial Corp. has maintained a relatively consistent level of financial leverage over the past two years, which indicates a degree of stability in its capital structure. However, it is essential for the company to carefully manage its debt levels to ensure financial health and mitigate risks associated with high leverage.