Hess Corporation (HES)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	13,018,000	10,511,000	11,324,000	7,473,000	4,667,000
Property, plant and equipment	US$ in thousands	—	—	15,828,000	14,678,000	14,115,000
Fixed asset turnover		—	—	0.72	0.51	0.33

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,018,000K ÷ $—K
= —

The fixed asset turnover ratio for Hess Corporation has shown a positive trend over the years, indicating an improvement in the company's efficiency in generating sales from its fixed assets.

In 2020, the fixed asset turnover ratio stood at 0.33, suggesting that the company generated $0.33 in sales for every dollar invested in fixed assets. This indicates a relatively lower efficiency in utilizing its fixed assets to generate revenue.

By the end of 2021, the ratio had increased to 0.51, signaling an enhancement in efficiency compared to the previous year. This shows that the company was able to generate $0.51 in sales for each dollar invested in fixed assets.

Further progress was observed in 2022, with the fixed asset turnover ratio reaching 0.72. This significant improvement indicates that the company has become more effective in utilizing its fixed assets to drive revenue growth.

However, no data is available for 2023 and 2024. The lack of data for these years makes it challenging to assess whether the positive trend in fixed asset turnover continued or if there were any fluctuations in the company's efficiency in generating sales from fixed assets during these periods.

Overall, the increasing trend in Hess Corporation's fixed asset turnover ratio from 2020 to 2022 suggests an improvement in operational efficiency and effective management of fixed assets to drive revenue generation.