Hess Corporation (HES)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,843,000 | 12,713,000 | 12,322,000 | 11,409,000 | 10,511,000 | 10,434,000 | 10,756,000 | 11,422,000 | 11,324,000 | 10,627,000 | 9,264,000 | 7,888,000 | 7,473,000 | 6,557,000 | 5,957,000 | 5,211,000 | 4,667,000 | 5,029,000 | 5,450,000 | 6,277,000 |
| Total current assets | US$ in thousands | 3,173,000 | 3,707,000 | 3,833,000 | 3,624,000 | 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 |
| Total current liabilities | US$ in thousands | 2,826,000 | 2,940,000 | 3,021,000 | 2,951,000 | 3,270,000 | 2,996,000 | 2,403,000 | 2,308,000 | 2,280,000 | 2,312,000 | 2,355,000 | 2,303,000 | 3,064,000 | 2,749,000 | 2,515,000 | 1,690,000 | 1,623,000 | 1,426,000 | 1,564,000 | 1,947,000 |
| Working capital turnover | 37.01 | 16.57 | 15.17 | 16.95 | 65.69 | 11.34 | 8.27 | 7.66 | 6.86 | 5.87 | 5.74 | 8.19 | 5.83 | 5.74 | 4.10 | 2.84 | 3.20 | 2.94 | 3.51 | 2.70 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $12,843,000K ÷ ($3,173,000K – $2,826,000K)
= 37.01
The working capital turnover ratio for Hess Corporation has been showing a fluctuating trend over the years. It increased from 2.70 on March 31, 2020, to a peak of 65.69 on December 31, 2023, indicating a significant improvement in efficiency in utilizing working capital to generate sales. This substantial increase could be attributed to the company's effective management of working capital during that period.
However, the working capital turnover ratio declined sharply to 16.95 on March 31, 2024, and further decreased to 15.17 on June 30, 2024. This sudden drop may suggest a potential inefficiency in managing working capital or a change in operational factors impacting the ratio.
It is noteworthy that the working capital turnover ratio then saw a slight recovery to 16.57 on September 30, 2024, and a further increase to 37.01 on December 31, 2024. These improvements could indicate efforts by the company to optimize its working capital management practices and enhance operational efficiency.
Overall, the working capital turnover ratio for Hess Corporation has shown a mix of fluctuations and improvements over the analyzed period, reflecting varying degrees of effectiveness in utilizing working capital to support sales activity. It would be essential for the company to closely monitor this ratio and continue implementing strategies to maintain or enhance its working capital efficiency in driving revenue generation.
Peer comparison
Dec 31, 2024