Hess Corporation (HES)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,688,000 | 2,486,000 | 2,713,000 | 1,739,000 | 1,545,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,270,000 | 2,396,000 | 3,064,000 | 1,623,000 | 2,510,000 |
| Cash ratio | 0.52 | 1.04 | 0.89 | 1.07 | 0.62 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,688,000K
+ $—K)
÷ $3,270,000K
= 0.52
The cash ratio of Hess Corporation has exhibited some fluctuations over the past five years. The ratio stood at 0.55 in 2023, indicating that the company has $0.55 in cash and cash equivalents for every $1 of current liabilities. This represents a decline from the previous year's ratio of 1.07.
In 2022, the cash ratio was relatively high at 1.07, indicating a strong liquidity position with more than enough cash to cover short-term obligations. The ratio decreased to 0.95 in 2021 and further to 0.69 in 2020, reflecting a lower level of cash reserves relative to current liabilities in those years.
Overall, the declining trend in the cash ratio from 2022 to 2023 may suggest a potential weakening of the company's liquidity position or a shift in its cash management strategies. Further analysis of the company's cash flow generation, working capital management, and overall financial health would be necessary to provide more context and insights into the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023