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.
Peer comparison
Dec 31, 2023