Hess Corporation (HES)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	1.86	2.00	2.37	2.83	2.73	1.74	1.43	1.82	1.91	1.51	1.78	1.97	6.92	6.30	7.60	11.90	2.10	1.98	1.89	2.07
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	1.41	1.56	1.88	1.88	2.08	1.51	1.26	1.42	1.94	1.89	2.42	2.51	13.07	13.30	8.91	6.35	1.34	1.44	1.49	1.42
Working capital turnover	65.69	11.61	8.46	7.83	7.54	5.88	5.78	8.28	5.91	5.90	4.24	2.92	3.29	2.97	3.50	2.70	10.08	6.16	5.03	4.27

1. Inventory Turnover Ratio:
Hess Corporation's inventory turnover ratio has been consistently reported as 0.00 for all quarters in the provided data. This indicates that the company is not efficiently managing its inventory levels or is potentially facing challenges in selling its inventory. It could be a cause for concern as it may lead to excess inventory holding costs or possible obsolescence.

2. Receivables Turnover Ratio:
The receivables turnover ratio for Hess Corporation has shown variability over the quarters, ranging from 5.20 to 10.54. A higher turnover ratio indicates that the company is efficient in collecting payments from customers and converting credit sales into cash quickly. The increasing trend from Q1 2022 to Q2 2023 indicates an improvement in the company's credit management and collection processes.

3. Payables Turnover Ratio:
Similar to inventory turnover, the payables turnover ratio of 0.00 for all quarters suggests that Hess Corporation is not effectively managing its accounts payable. A low or zero turnover ratio can indicate that the company is not paying its suppliers promptly or efficiently utilizing trade credit terms.

4. Working Capital Turnover Ratio:
The working capital turnover ratio of Hess Corporation has shown an increasing trend over the quarters, indicating that the company is generating more revenue per dollar of working capital. This suggests that the company is using its working capital more effectively to support its operational activities and generate sales. The significant increase from Q1 2022 to Q4 2023 reflects improved operational efficiency and better utilization of resources.

In summary, while Hess Corporation demonstrates varying levels of efficiency in managing its working capital and receivables turnover, there are notable concerns regarding its inventory and payables turnover ratios. Improving inventory management and payables processes could potentially enhance the company's overall financial performance and efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	196.39	182.77	153.98	128.99	133.79	209.22	255.42	200.21	191.07	241.49	204.57	185.03	52.78	57.93	48.03	30.68	173.52	184.74	192.91	176.70
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	259.70	233.82	193.85	193.77	175.72	241.58	289.26	257.07	188.50	193.56	151.09	145.32	27.93	27.45	40.96	57.50	273.25	253.13	244.95	257.31

The Days of Inventory on Hand (DOH) ratio for Hess Corporation is not provided in the table, indicating that the company's inventory turnover is not available for analysis. The Days of Sales Outstanding (DSO) ratio shows a decreasing trend over the quarters, indicating that Hess Corporation is collecting its accounts receivable more efficiently. In Q4 2023, DSO stands at 46.18 days, down from 51.16 days in Q3 2023. This suggests that the company is converting its sales into cash more quickly.

The Number of Days of Payables ratio is not available in the table, which means that the information on how quickly the company pays its suppliers is not provided for analysis. This ratio is essential for understanding the company's working capital management and relationships with suppliers.

Overall, while the data for Days of Inventory on Hand and Number of Days of Payables is missing, the decreasing trend in Days of Sales Outstanding is a positive indication of Hess Corporation's ability to efficiently collect its accounts receivable, potentially improving its cash flow and liquidity position.

Long-term

	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
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
Total asset turnover	0.44	0.46	0.49	0.53	0.53	0.49	0.44	0.40	0.37	0.35	0.32	0.28	0.26	0.27	0.28	0.30	0.30	0.30	0.31	0.31

Hess Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency with which the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate sales. From Q1 2022 to Q4 2023, Hess Corporation's fixed asset turnover has been generally decreasing from 0.55 to 0.60. This indicates a decline in the company's ability to generate sales revenue relative to its investment in fixed assets.

2. Total Asset Turnover: The total asset turnover ratio indicates the company's ability to generate sales revenue in relation to its total assets. Hess Corporation's total asset turnover ratio has also shown a declining trend, moving from 0.40 in Q1 2022 to 0.44 in Q4 2023. This suggests that the company's efficiency in utilizing all its assets to generate revenue has slightly improved, but is still relatively low.

In summary, Hess Corporation's long-term activity ratios reveal a decrease in the efficiency of utilizing both fixed and total assets to generate sales revenue over the analyzed period. This trend might indicate potential inefficiencies in asset utilization or a need for strategic adjustments to improve operational performance.