Hess Corporation (HES)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.05 | 1.31 | 1.54 | 1.65 | 1.64 | 1.78 | 1.69 | 1.42 | 1.42 | 1.42 | 1.57 | 2.08 | 1.90 | 2.20 | 1.99 | 2.19 | 1.26 | 1.45 | 1.58 | 1.69 |
| Quick 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 |
| 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 |
The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has shown some fluctuation over the past eight quarters for Hess Corporation. The ratio has decreased from 1.65 in Q1 2023 to 1.05 in Q4 2023, indicating potential challenges in meeting short-term liabilities. However, it is worth noting that a current ratio above 1 generally suggests the company is in a good position to pay off its current debt.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also displayed variability, ranging from 1.55 in Q4 2022 to 0.96 in Q4 2023. This ratio indicates the company's ability to meet short-term obligations using its most liquid assets. While the ratios have generally been above 1, the declining trend signals a potential need for closer monitoring of liquidity levels.
The cash ratio, which provides the most conservative measure of liquidity by only considering cash and cash equivalents, has fluctuated between 0.55 and 1.07 over the past eight quarters. A cash ratio above 1 implies that the company can cover its current liabilities solely with its cash holdings. Hess Corporation's cash ratio has been relatively strong, albeit with some ups and downs.
In summary, while Hess Corporation has maintained liquidity levels above industry benchmarks in general, the fluctuating trends in the liquidity ratios suggest a need for continued monitoring and management of working capital to ensure the company's ability to meet its short-term obligations.
See also:
Hess Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | -63.31 | -51.05 | -39.88 | -64.78 | -41.93 | -32.36 | -33.84 | -56.85 | 2.57 | 47.93 | 53.48 | 39.71 | 24.85 | 30.47 | 7.07 | -26.81 | -99.73 | -68.40 | -52.04 | -80.61 |
Hess Corporation's cash conversion cycle has fluctuated over the past eight quarters. In Q1 2022, the cycle was at its highest point, at 70.19 days, indicating a longer time for the company to convert its investments in inventory and other resources back into cash. Subsequently, there was a downward trend in the cash conversion cycle over the next three quarters, reaching its lowest point in Q3 2023 at 34.64 days.
The cycle then increased slightly in Q4 2023 to 46.18 days, suggesting a longer operating cycle to manage cash flows efficiently. The variations in the cash conversion cycle indicate fluctuations in Hess Corporation's efficiency in managing its working capital and cash flow. It is essential for the company to monitor and optimize this cycle to maintain healthy liquidity and financial performance.