Hess Corporation (HES)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,171,000 | 1,688,000 | 2,486,000 | 2,713,000 | 1,739,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,826,000 | 3,270,000 | 2,280,000 | 3,064,000 | 1,623,000 |
| Cash ratio | 0.41 | 0.52 | 1.09 | 0.89 | 1.07 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,171,000K
+ $—K)
÷ $2,826,000K
= 0.41
The cash ratio is used to assess a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
For Hess Corporation, the cash ratio fluctuated over the years as follows:
- December 31, 2020: 1.07
- December 31, 2021: 0.89
- December 31, 2022: 1.09
- December 31, 2023: 0.52
- December 31, 2024: 0.41
The cash ratio peaked at 1.09 on December 31, 2022, indicating the company had more than enough cash to cover its short-term liabilities during that period. However, it declined in the following years, reaching its lowest point of 0.41 on December 31, 2024, which may suggest a potential liquidity challenge in meeting short-term obligations.
Overall, the trend of the cash ratio for Hess Corporation reflects some fluctuations, which may warrant further investigation into the company's cash management strategies and liquidity position to ensure its ability to meet short-term financial commitments in the future.
Peer comparison
Dec 31, 2024