Hess Corporation (HES)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,511,000 | 11,324,000 | 7,583,000 | 4,804,000 | 6,510,000 |
| Property, plant and equipment | US$ in thousands | 17,432,000 | 15,098,000 | 14,182,000 | 14,115,000 | 16,814,000 |
| Fixed asset turnover | 0.60 | 0.75 | 0.53 | 0.34 | 0.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,511,000K ÷ $17,432,000K
= 0.60
Hess Corporation's fixed asset turnover has fluctuated over the past five years, ranging from 0.33 to 0.75. The fixed asset turnover ratio reflects how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets.
In 2023, the fixed asset turnover ratio decreased to 0.60 from 0.75 in 2022. This decline suggests that the company may have experienced challenges in effectively utilizing its fixed assets to generate revenue during the year. It is important for management to investigate the reasons behind this decline and take appropriate actions to improve asset efficiency in the future.
The trend over the five-year period shows some volatility in the fixed asset turnover ratio, indicating fluctuations in operational efficiency and asset utilization by the company. Investors and analysts may monitor this ratio closely to assess Hess Corporation's ability to generate revenue from its fixed assets and manage its asset base effectively.
Peer comparison
Dec 31, 2023