Hess Corporation (HES)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,688,000 | 2,486,000 | 2,713,000 | 1,739,000 | 1,545,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,270,000 | 2,396,000 | 3,064,000 | 1,623,000 | 2,510,000 |
| Quick ratio | 0.52 | 1.04 | 0.89 | 1.07 | 0.62 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,688,000K
+ $—K
+ $—K)
÷ $3,270,000K
= 0.52
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.
Hess Corporation's quick ratio has fluctuated over the past five years. As of December 31, 2023, the quick ratio stands at 0.96, which is below the ideal threshold of 1. This suggests that the company may have some difficulty in meeting its short-term obligations solely with its most liquid assets.
Comparing this to previous years, we see a downward trend from 2019 to 2023. This indicates a potential deterioration in the company's short-term liquidity position over time. A declining trend in the quick ratio could raise concerns about the company's ability to cover its immediate financial obligations in the short term.
Further analysis and monitoring of Hess Corporation's liquidity position and the underlying factors affecting its quick ratio would be necessary to assess the company's overall financial health and its ability to manage short-term liquidity risks effectively.
Peer comparison
Dec 31, 2023