Hess Corporation (HES)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,018,000 | 10,511,000 | 11,324,000 | 7,473,000 | 4,667,000 |
| Total current assets | US$ in thousands | 3,173,000 | 3,430,000 | 3,931,000 | 4,346,000 | 3,081,000 |
| Total current liabilities | US$ in thousands | 2,826,000 | 3,270,000 | 2,280,000 | 3,064,000 | 1,623,000 |
| Working capital turnover | 37.52 | 65.69 | 6.86 | 5.83 | 3.20 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,018,000K ÷ ($3,173,000K – $2,826,000K)
= 37.52
The working capital turnover ratio for Hess Corporation has shown a significant improvement over the years based on the provided data.
As of December 31, 2020, the working capital turnover was 3.20, indicating that the company generated $3.20 of revenue for every dollar of working capital invested. This ratio increased to 5.83 by December 31, 2021, further improving to 6.86 by December 31, 2022.
A remarkable surge in efficiency was seen by December 31, 2023, with a working capital turnover of 65.69. This implies that for every dollar of working capital invested, the company generated $65.69 in revenue. However, this sharp increase may also raise questions about the underlying factors contributing to such a significant spike in efficiency.
By December 31, 2024, the working capital turnover ratio decreased to 37.52, indicating a slight decline in efficiency compared to the previous year. It could be essential for stakeholders to assess the reasons behind this decrease and evaluate whether it is a one-time fluctuation or a trend that might require further investigation.
Peer comparison
Dec 31, 2024