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Heritage Financial (Heritage Financial) Net-Net Working Capital : $-141.74 (As of Dec. 2023)


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What is Heritage Financial Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Heritage Financial's Net-Net Working Capital for the quarter that ended in Dec. 2023 was $-141.74.

The industry rank for Heritage Financial's Net-Net Working Capital or its related term are showing as below:

HFWA's Price-to-Net-Net-Working-Capital is not ranked *
in the Banks industry.
Industry Median: 7.515
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Heritage Financial Net-Net Working Capital Historical Data

The historical data trend for Heritage Financial's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Heritage Financial Net-Net Working Capital Chart

Heritage Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -97.00 -117.92 -112.50 -134.83 -141.74

Heritage Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -136.07 -139.71 -141.97 -141.74 -145.36

Competitive Comparison of Heritage Financial's Net-Net Working Capital

For the Banks - Regional subindustry, Heritage Financial's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Heritage Financial's Price-to-Net-Net-Working-Capital Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Heritage Financial's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Heritage Financial's Price-to-Net-Net-Working-Capital falls into.



Heritage Financial Net-Net Working Capital Calculation

Heritage Financial's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(224.973+1134.353+0.75 * 19.518+0.5 * 0-6321.696
-0-0)/34.9062
=-141.74

Heritage Financial's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2023 is calculated as

Net-Net Working Capital(Q: Dec. 2023 )
=(Balance Sheet Cash And Cash Equivalents+Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(224.973+1134.353+0.75 * 19.518+0.5 * 0-6321.696
-0-0)/34.9062
=-141.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Heritage Financial  (NAS:HFWA) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Heritage Financial Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Heritage Financial's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Heritage Financial (Heritage Financial) Business Description

Traded in Other Exchanges
N/A
Address
201 Fifth Avenue SW, Olympia, WA, USA, 98501
Heritage Financial Corp is a bank holding company. The company through its subsidiary provides commercial lending and deposit relationships with small businesses and their owners in its market areas and attracts deposits from the general public. It accepts various deposit products, such as noninterest demand accounts, money market accounts, savings accounts, and certificates of deposit. Besides, the Bank also makes real estate construction loans, land development loans, and consumer loans, and originates first mortgage loans on residential properties primarily located in its market area. Geographically, all the business activity functions through the region of the United States.
Executives
Frederick B Rivera director 201 5TH AVE SW, OLYMPIA WA 98501
Brian Charneski director P O BOX 1578, OLYMPIA WA 98507
Jeffrey S Lyon director 2542 N VISTA VIEW DRIVE, TACOMA WA 98406
Matthew T. Ray officer: EVP Chief Lending Officer 201 5TH AVE SW, OLYMPIA WA 98501
Eric Kayen Chan director 201 5TH AVE SW, OLYMPIA WA 98501
Amy E. Curran officer: EVP Director Commercial Lend 201 5TH AVE SW, OLYMPIA WA 98501
Kelli Ann Wilson officer: EVP Chief Banking Officer 201 5TH AVE SW, OLYMPIA WA 98501
Cindy M Huntley officer: SVP Director of Retail Banking 201 5TH AVE SW, OLYMPIA WA 98507
Brian L Vance director, officer: President and CEO 2204 57TH WAY NW, OLYMPIA WA 98502
John A Clees director 4342 SUNSET BEACH DRIVE NW, OLYMPIA WA 98502
Tony Chalfant officer: EVP Chief Credit Officer 201 5TH ST SW, OLYMPIA WA 98501
Gail B. Giacobbe director 201 5TH AVE SW, OLYMPIA WA 98501
Trevor D. Dryer director 201 5TH AVE SW, OLYMPIA WA 98501
Gragg E Miller director 450 SW BAYSHORE DRIVE, OAK HARBOR WA 98277
Jeffrey J Deuel officer: Executive Vice President 201 5TH AVENUE SW, OLYMPIA WA 90501