Hess Corporation (HES)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,749,000 | 6,162,000 | 6,662,000 | 5,779,000 | 5,011,000 | 3,889,000 | 3,803,000 | 3,620,000 | 3,410,000 | 3,229,000 | 3,012,000 | 2,942,000 | 2,929,000 | 2,997,000 | 3,133,000 | 3,208,000 | 3,416,000 | 3,588,000 | 3,640,000 | 3,646,000 |
| Inventory | US$ in thousands | 419,000 | 397,000 | 382,000 | 382,000 | 304,000 | 333,000 | 278,000 | 229,000 | 217,000 | 278,000 | 317,000 | 243,000 | 223,000 | 262,000 | 241,000 | 219,000 | 378,000 | 422,000 | 113,000 | 230,000 |
| Inventory turnover | 11.33 | 15.52 | 17.44 | 15.13 | 16.48 | 11.68 | 13.68 | 15.81 | 15.71 | 11.62 | 9.50 | 12.11 | 13.13 | 11.44 | 13.00 | 14.65 | 9.04 | 8.50 | 32.21 | 15.85 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,749,000K ÷ $419,000K
= 11.33
Hess Corporation's inventory turnover has fluctuated over the period indicated in the data. Inventory turnover measures how efficiently a company manages its inventory by showing how many times during a specific period its inventory is sold and replaced.
The inventory turnover for Hess Corporation ranged from as low as 8.50 to as high as 32.21, with an average turnover of around 14. This indicates that, on average, Hess Corporation's inventory is turned over approximately 14 times a year.
A higher inventory turnover is generally seen as more favorable as it suggests that the company is selling its inventory quickly, minimizing holding costs and potential obsolescence risk.
Analyzing the data, we observe that there were significant fluctuations in inventory turnover over the period, possibly indicating changes in sales volumes, inventory management practices, or industry demand. Further investigation into the reasons behind these fluctuations would provide additional insights into the company's operations and potential areas for improvement.
Peer comparison
Dec 31, 2024
Dec 31, 2024