Hess Corporation (HES)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	10,511,000	10,680,000	11,002,000	11,668,000	11,570,000	10,645,000	9,334,000	7,977,000	7,583,000	6,745,000	6,110,000	5,354,000	4,804,000	5,086,000	5,425,000	6,280,000	6,510,000	6,493,000	6,806,000	6,675,000
Total current assets	US$ in thousands	3,430,000	3,916,000	3,704,000	3,799,000	3,931,000	4,123,000	3,969,000	3,266,000	4,346,000	3,892,000	3,969,000	3,522,000	3,081,000	3,136,000	3,115,000	4,270,000	3,156,000	3,398,000	3,684,000	3,834,000
Total current liabilities	US$ in thousands	3,270,000	2,996,000	2,403,000	2,308,000	2,396,000	2,312,000	2,355,000	2,303,000	3,064,000	2,749,000	2,527,000	1,690,000	1,623,000	1,426,000	1,564,000	1,947,000	2,510,000	2,344,000	2,332,000	2,271,000
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,511,000K ÷ ($3,430,000K – $3,270,000K)
= 65.69

The working capital turnover ratio for Hess Corporation has shown significant fluctuations over the past eight quarters. In Q4 2023, the ratio spiked to 65.69, a substantial increase from the previous quarter's ratio of 11.32. This sharp increase may indicate that the company efficiently utilized its working capital to generate revenue during this period.

However, prior to Q4 2023, the working capital turnover ratio fluctuated between 5.77 and 8.25, suggesting varying levels of efficiency in converting working capital into revenue. The highest ratio recorded before Q4 2023 was in Q1 2022, at 8.25, indicating strong efficiency in utilizing working capital to generate sales.

Overall, the trend in the working capital turnover ratio for Hess Corporation demonstrates variability in the company's ability to effectively utilize its working capital to generate sales revenue. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and financial management strategies.