Hess Corporation (HES)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	10,511,000	10,680,000	11,002,000	11,668,000	11,570,000	10,645,000	9,334,000	7,977,000	7,583,000	6,745,000	6,110,000	5,354,000	4,804,000	5,086,000	5,425,000	6,280,000	6,510,000	6,493,000	6,806,000	6,675,000
Property, plant and equipment	US$ in thousands	17,432,000	16,421,000	15,741,000	15,412,000	15,098,000	15,092,000	14,818,000	14,489,000	14,182,000	13,954,000	13,657,000	13,863,000	14,115,000	14,235,000	14,825,000	14,811,000	16,814,000	16,449,000	16,107,000	15,898,000
Fixed asset turnover		0.60	0.65	0.70	0.76	0.77	0.71	0.63	0.55	0.53	0.48	0.45	0.39	0.34	0.36	0.37	0.42	0.39	0.39	0.42	0.42

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,511,000K ÷ $17,432,000K
= 0.60

Hess Corporation's fixed asset turnover has shown some fluctuations over the past eight quarters. The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.

In Q4 2023, the fixed asset turnover was 0.60, indicating that for every dollar of fixed assets, the company generated $0.60 of revenue. The ratio increased slightly to 0.63 in Q3 2023 before further improving to 0.68 in Q2 2023. This suggests that the company was able to generate more revenue from its fixed assets during these periods.

However, there was a decline in Q1 2023, with the ratio dropping to 0.74. This could indicate a decrease in efficiency in utilizing fixed assets to generate revenue. The trend in the previous quarters shows a relatively stable performance, with ratios ranging from 0.55 to 0.75.

Overall, while there have been fluctuations in the fixed asset turnover ratio, it is essential for Hess Corporation to continue monitoring and managing its fixed assets effectively to ensure optimal utilization and revenue generation.