Hess Corporation (HES)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,688,000	2,018,000	2,226,000	2,100,000	2,486,000	2,384,000	2,159,000	1,370,000	2,713,000	2,419,000	2,430,000	1,866,000	1,739,000	1,285,000	1,646,000	2,080,000	1,545,000	1,863,000	2,208,000	2,300,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.52	0.67	0.93	0.91	1.04	1.03	0.92	0.59	0.89	0.88	0.96	1.10	1.07	0.90	1.05	1.07	0.62	0.79	0.95	1.01

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 shown fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

In Q1 2022, the cash ratio was 0.65, which increased to 0.95 in Q2 2022, indicating an improvement in liquidity. However, in Q3 2022, the cash ratio remained stable at 1.07, suggesting strong cash reserves relative to short-term obligations. This trend continued in Q4 2022 with a similar cash ratio of 1.07.

In 2023, the cash ratio decreased gradually from 1.02 in Q1 to 0.55 in Q4. This declining trend indicates a decrease in the company's ability to cover its short-term liabilities with cash and cash equivalents. Q2 2023 had a relatively healthy cash ratio of 1.00, which dropped to 0.71 in Q3 2023, and further decreased to 0.55 in Q4 2023.

Overall, Hess Corporation experienced fluctuations in its cash ratio over the analyzed period, with a peak in Q3 2022 and a dip in Q4 2023. This implies potential changes in the company's liquidity position, which could be further analyzed in conjunction with other financial metrics for a more comprehensive assessment of its financial health.