Heritage Financial Corporation (HFWA)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 132,225 | 107,508 | 127,549 | 66,503 | 99,213 |
| Interest expense | US$ in thousands | 59,310 | 8,072 | 7,042 | 13,323 | 18,168 |
| Interest coverage | 2.23 | 13.32 | 18.11 | 4.99 | 5.46 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $132,225K ÷ $59,310K
= 2.23
Unfortunately, without specific data on Heritage Financial Corp.'s interest expense and earnings before interest and taxes (EBIT) for the years 2019 to 2023, it is not possible to calculate the interest coverage ratio. Interest coverage ratio is a critical financial metric that indicates a company's ability to meet its interest obligations from its operating earnings. A higher interest coverage ratio suggests a stronger ability to cover interest expenses, indicating lower financial risk. Conversely, a lower ratio may signal potential financial distress. To perform a thorough analysis and assess the company's financial health, detailed financial information on interest expenses and EBIT for the specified years is required.