Heritage Financial Corporation (HFWA)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| Financial leverage ratio | 8.23 | 8.18 | 8.30 | 8.37 | 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 |
The solvency ratios of Heritage Financial Corporation have shown consistent stability and strength over the past few years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 throughout the reporting periods, indicating that the company has no long-term debt obligations in relation to its assets, capital, or equity.
The financial leverage ratio, however, has fluctuated slightly over the years, ranging from 7.00 to 9.27. This ratio measures the extent to which the company is using debt to finance its operations, with a higher ratio indicating higher financial risk. Despite the fluctuations, the financial leverage ratio has generally remained within a manageable range, peaking at 9.27 in September 2022.
Overall, Heritage Financial Corporation's solvency ratios suggest a conservative and prudent approach to managing its capital structure, with a low reliance on debt financing. The company's strong solvency position indicates its ability to meet its financial obligations and suggests a stable financial standing in the long term.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 0.37 | 0.39 | 0.54 | 0.68 | 1.17 | 2.31 | 3.91 | 7.74 | 12.24 | 13.43 | 12.93 | 14.38 | 14.99 | 14.89 | 12.60 | 6.59 | 3.99 | 2.85 | 2.71 | 3.97 |
The interest coverage ratio of Heritage Financial Corporation has shown fluctuating trends over the past few years.
From March 31, 2020, to December 31, 2021, the interest coverage ratio improved steadily from 3.97 to 14.99. This suggests that the company's operating income was more than sufficient to cover its interest expenses during this period, indicating a healthy financial position.
However, from March 31, 2022, to December 31, 2024, there is a declining trend in the interest coverage ratio, dropping from 14.38 to 0.37. This decline may indicate that the company's ability to cover its interest expenses with operating income has weakened significantly.
With the interest coverage ratio falling below 1 towards the end of the observation period, it raises concerns about the company's ability to meet its interest obligations using its current level of operating income. This could potentially point towards financial distress or liquidity issues that may require attention from management to address.