Hess Corporation (HES)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,511,000 | 11,324,000 | 7,583,000 | 4,804,000 | 6,510,000 |
| Total assets | US$ in thousands | 24,007,000 | 21,695,000 | 20,515,000 | 18,821,000 | 21,782,000 |
| Total asset turnover | 0.44 | 0.52 | 0.37 | 0.26 | 0.30 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,511,000K ÷ $24,007,000K
= 0.44
The total asset turnover ratio for Hess Corporation has shown fluctuations over the past five years. In 2023, the total asset turnover ratio decreased to 0.44 from 0.52 in 2022. This decline may indicate that the company generated $0.44 in revenue for every $1 of assets in 2023, compared to $0.52 in the previous year.
However, it is important to note that the total asset turnover ratio has improved since 2020 when it was at 0.25. This suggests that the company has been more effective in utilizing its assets to generate revenue in recent years.
Overall, while there was a decline in the total asset turnover ratio from 2022 to 2023, the trend in the ratio over the past five years indicates that Hess Corporation has been gradually improving its asset utilization efficiency, which is a positive sign for the company's operational performance.
Peer comparison
Dec 31, 2023