Hess Corporation (HES)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 78.48% | 69.89% | 60.81% | 26.81% |
| Operating profit margin | 76.09% | 47.84% | 36.44% | 27.95% | -7.35% |
| Pretax margin | 33.45% | 23.51% | 32.51% | 19.94% | -61.07% |
| Net profit margin | 21.27% | 13.15% | 18.51% | 11.91% | -60.83% |
Hess Corporation's profitability ratios have exhibited a noteworthy improvement over the years, reflecting enhanced operational efficiency and cost management. The gross profit margin has shown impressive growth, increasing from 26.81% in 2020 to 100% in 2024, indicating the company's ability to generate higher revenue relative to its cost of goods sold.
Moreover, the operating profit margin has displayed a substantial positive shift, evolving from a negative figure of -7.35% in 2020 to 76.09% in 2024. This trend indicates that Hess Corporation has been successful in controlling its operational expenses and improving its operating efficiency.
The pretax margin also reveals a positive trajectory, escalating from -61.07% in 2020 to 33.45% in 2024. This signifies the company's ability to efficiently manage its operating costs and generate higher profits before taxes.
Furthermore, the net profit margin has demonstrated steady growth, rising from a negative net profit margin of -60.83% in 2020 to 21.27% in 2024. This indicates an improvement in the company's overall profitability, as it has been able to effectively manage its expenses and increase its net income relative to its revenue.
Overall, the increasing trend in Hess Corporation's profitability ratios illustrates the company's successful financial performance and enhanced profitability over the specified period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 37.31% | 20.94% | 18.99% | 10.18% | -1.82% |
| Return on assets (ROA) | 10.43% | 5.76% | 9.65% | 4.34% | -15.08% |
| Return on total capital | 39.08% | 32.82% | 50.53% | 31.24% | -44.32% |
| Return on equity (ROE) | 24.69% | 15.38% | 26.26% | 14.13% | -52.91% |
Hess Corporation's profitability ratios have shown significant improvement over the years. The Operating Return on Assets (Operating ROA) increased from -1.82% in 2020 to 37.31% in 2024, indicating that the company's operating profitability relative to its total assets has been on a positive trajectory.
Similarly, the Return on Assets (ROA) improved from -15.08% in 2020 to 10.43% in 2024, reflecting the company's ability to generate profit from its assets. The Return on Total Capital also exhibited a positive trend, rising from -44.32% in 2020 to 39.08% in 2024, showing the company's efficiency in utilizing its total capital to generate returns.
Moreover, the Return on Equity (ROE) increased from -52.91% in 2020 to 24.69% in 2024, signifying an enhancement in shareholder wealth creation. Overall, these profitability ratios indicate that Hess Corporation has been successful in improving its profitability and generating returns for its stakeholders over the years.