Hess Corporation (HES)
Working capital 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 current assets | US$ in thousands | 3,430,000 | 3,931,000 | 4,346,000 | 3,081,000 | 3,156,000 |
| Total current liabilities | US$ in thousands | 3,270,000 | 2,396,000 | 3,064,000 | 1,623,000 | 2,510,000 |
| Working capital turnover | 65.69 | 7.38 | 5.91 | 3.29 | 10.08 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $10,511,000K ÷ ($3,430,000K – $3,270,000K)
= 65.69
The working capital turnover for Hess Corporation has shown significant fluctuations over the past five years. The ratio has experienced an upward trend, increasing from 10.05 in 2019 to 65.69 in 2023. This indicates that the company has been able to efficiently utilize its working capital to generate sales revenue.
A higher working capital turnover ratio suggests that the company is effectively managing its working capital, which includes current assets and current liabilities. This can be a positive sign of operational efficiency and liquidity management.
It is essential to further analyze the components of working capital, such as inventory, accounts receivable, and accounts payable, to understand the drivers behind the changes in the working capital turnover ratio. Additionally, comparing this ratio to industry benchmarks can provide valuable insights into Hess Corporation's performance relative to its peers.
Peer comparison
Dec 31, 2023