Hess Corporation (HES)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 650,000 | 619,000 | 437,000 | 2,587,000 | 590,000 |
| Inventory | US$ in thousands | 304,000 | 217,000 | 223,000 | 378,000 | 261,000 |
| Inventory turnover | 2.14 | 2.85 | 1.96 | 6.84 | 2.26 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $650,000K ÷ $304,000K
= 2.14
The inventory turnover ratio for Hess Corporation has been consistently reported as 0.00 for the past five years, indicating that the company has not effectively managed its inventory levels relative to its sales volume during this period. A low or zero inventory turnover ratio may suggest inefficient inventory management, overstocking, slow-moving inventory, or challenges in maintaining accurate inventory records. It is crucial for the company to assess and improve its inventory management practices to optimize working capital, reduce carrying costs, and enhance overall operational efficiency and profitability.
Peer comparison
Dec 31, 2023