Hess Corporation (HES)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.82% | 96.71% | 94.24% | 46.15% | 90.94% |
| Operating profit margin | 70.42% | 74.42% | 70.78% | 25.29% | 66.44% |
| Pretax margin | 20.12% | 28.21% | 15.28% | -64.61% | 0.81% |
| Net profit margin | 13.15% | 18.51% | 7.37% | -64.38% | -6.27% |
Hess Corporation's profitability ratios have shown fluctuations over the past five years. The gross profit margin has remained consistently strong at 100% each year, indicating efficient cost management in generating revenue.
However, the operating profit margin has varied, with a notable decrease in 2020 and a subsequent recovery in 2021 and 2022. This suggests volatility in the company's operating expenses and revenue generation efficiency.
The pretax margin also displays significant fluctuations, with a substantial negative margin in 2020 due to a sharp decline in pre-tax profits. The margins rebounded in subsequent years, indicating improved performance in generating profits before taxes.
Hess Corporation's net profit margin has been inconsistent, with a sharp decline in 2020 and a notable recovery in 2021 and 2022. The negative margins in 2019 and 2020 indicate challenges in generating profits after accounting for all expenses. Overall, the company has shown resilience in improving its profitability ratios in recent years, albeit with some volatility in performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 30.83% | 38.84% | 26.16% | 6.46% | 19.86% |
| Return on assets (ROA) | 5.76% | 9.66% | 2.72% | -16.43% | -1.87% |
| Return on total capital | 15.00% | 22.86% | 11.52% | -19.31% | 2.73% |
| Return on equity (ROE) | 15.38% | 26.68% | 8.87% | -57.64% | -4.67% |
Hess Corporation's profitability ratios have fluctuated over the past five years.
- Operating return on assets (Operating ROA) has seen some variability, ranging from a low of -2.09% in 2020 to a high of 17.73% in 2022. This ratio measures the company's ability to generate profits from its assets through its core operations.
- Return on assets (ROA) has also fluctuated, reaching a low of -16.43% in 2020 and a high of 9.66% in 2022. ROA indicates how effectively the company is utilizing its assets to generate profits.
- Return on total capital has shown a similar trend, varying from a low of -2.83% in 2020 to a high of 23.55% in 2022. This ratio evaluates the company's overall profitability in relation to its total capital.
- Return on equity (ROE) has displayed significant fluctuations, with a low of -57.64% in 2019 and a high of 26.68% in 2022. ROE measures the company's profitability in relation to its shareholders' equity.
Overall, Hess Corporation's profitability ratios have shown mixed performance over the past five years, indicating fluctuations in its ability to generate profits from its assets and equity. This may suggest varying levels of operational efficiency and financial performance within the company during this period.