Hess Corporation (HES)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.49 | 7.44 | 15.71 | 13.13 | 9.04 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 37.52 | 65.69 | 6.86 | 5.83 | 3.20 |
Hess Corporation's inventory turnover has shown an increasing trend over the years, from 9.04 in 2020 to 6.49 in 2024. This suggests that the company's inventory is being sold more efficiently in recent years.
The receivables turnover ratio is not available for analysis as the data is not provided for any of the years.
Similarly, the payables turnover ratio is also not available for analysis as the data is not provided for any of the years.
The working capital turnover ratio has exhibited significant fluctuations, soaring from 3.20 in 2020 to 65.69 in 2023, before declining to 37.52 in 2024. Such a substantial increase in 2023 indicates that the company generated significant revenue relative to its working capital that year, although the ratio decreased in 2024.
Overall, Hess Corporation's activity ratios reveal a mixed performance, with strong inventory turnover suggesting efficient sales of inventory, while the working capital turnover ratio fluctuates significantly, indicating variations in revenue generation relative to working capital over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.21 | 49.05 | 23.23 | 27.79 | 40.39 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Hess Corporation's activity ratios provide insights into the efficiency of its inventory management and collection of receivables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH over the years shows a decreasing trend, indicating that the company has been managing its inventory more efficiently.
- The 2022 DOH of 23.23 days indicates that the company is able to turn its inventory into sales relatively quickly, which is a positive sign for liquidity.
2. Days of Sales Outstanding (DSO) and Number of Days of Payables:
- No data is provided for DSO and the number of days of payables, which makes it challenging to assess the efficiency of receivables collection and payables management.
- Without this information, it is difficult to evaluate the company's ability to collect payments from customers timely or its payment practices with suppliers.
In conclusion, while the data on DOH shows positive trends in inventory management, a lack of data on DSO and payables hinders a comprehensive analysis of Hess Corporation's overall activity ratios.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.72 | 0.51 | 0.33 |
| Total asset turnover | 0.49 | 0.44 | 0.52 | 0.36 | 0.25 |
Hess Corporation's fixed asset turnover has shown improvement over the years, increasing from 0.33 in 2020 to 0.72 in 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets. However, there is missing data for 2023 and 2024, so it is not possible to assess the trend for those years.
In terms of total asset turnover, the company's performance has been relatively consistent, with a gradual increase from 0.25 in 2020 to 0.52 in 2022 before declining slightly to 0.49 in 2024. This ratio reflects the efficiency of the company in generating sales from its total assets. It is important to keep monitoring this ratio to ensure the company is utilizing its assets effectively to generate revenue.