Hess Corporation (HES)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	2,721,000	2,262,000	3,410,000	2,929,000	3,416,000
Inventory	US$ in thousands	419,000	304,000	217,000	223,000	378,000
Inventory turnover		6.49	7.44	15.71	13.13	9.04

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,721,000K ÷ $419,000K
= 6.49

Hess Corporation's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio reflects the speed at which the company is able to sell its inventory within a given period.

For the years provided:
- December 31, 2020: Hess Corporation had an inventory turnover of 9.04 times.
- December 31, 2021: The inventory turnover ratio improved to 13.13 times, indicating a more efficient management of inventory.
- December 31, 2022: The inventory turnover ratio further increased to 15.71 times, signaling an even faster rate of inventory turnover.
- December 31, 2023: There was a decline in inventory turnover to 7.44 times, which may suggest potential inventory management issues or a change in sales patterns.
- December 31, 2024: The inventory turnover ratio decreased to 6.49 times, indicating a further slowdown in the rate of inventory turnover.

Overall, Hess Corporation experienced both improvements and declines in its inventory turnover ratio over the period. It is important for the company to closely monitor and manage its inventory levels to ensure optimal efficiency and financial performance.