Hess Corporation (HES)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,481,000 | 4,570,000 | 4,412,000 | 3,774,000 | 3,005,000 | 3,285,000 | 3,420,000 | 4,051,000 | 4,127,000 | 3,668,000 | 2,877,000 | 2,058,000 | 1,693,000 | 1,162,000 | 809,000 | 266,000 | -393,000 | -445,000 | -263,000 | 125,000 |
| Revenue (ttm) | US$ in thousands | 12,843,000 | 12,713,000 | 12,322,000 | 11,409,000 | 10,511,000 | 10,434,000 | 10,756,000 | 11,422,000 | 11,324,000 | 10,627,000 | 9,264,000 | 7,888,000 | 7,473,000 | 6,557,000 | 5,957,000 | 5,211,000 | 4,667,000 | 5,029,000 | 5,450,000 | 6,277,000 |
| Operating profit margin | 42.68% | 35.95% | 35.81% | 33.08% | 28.59% | 31.48% | 31.80% | 35.47% | 36.44% | 34.52% | 31.06% | 26.09% | 22.65% | 17.72% | 13.58% | 5.10% | -8.42% | -8.85% | -4.83% | 1.99% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $5,481,000K ÷ $12,843,000K
= 42.68%
Hess Corporation's operating profit margin has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The operating profit margin started at 1.99% in March 2020, indicating low profitability, and even dipped into negative territory in the subsequent quarters. This was a concerning trend, suggesting that the company's operating expenses were outpacing its revenues during this period.
However, a significant improvement was observed in the operating profit margin starting from March 31, 2021, when it increased to 5.10%. This positive trend continued, with consistent growth in the operating profit margin reaching 42.68% by December 31, 2024. This improvement reflects positively on the company's operational efficiency and cost management strategies.
The increasing trend in the operating profit margin indicates that the company was able to control its operating expenses better and generate higher profits from its core business activities. A higher operating profit margin signifies that a larger percentage of revenue is turning into profit after covering all operating costs, which is a positive sign for investors and stakeholders.
Overall, the increasing operating profit margin for Hess Corporation over the analyzed period indicates improving profitability and operational efficiency, suggesting a potentially positive outlook for the company's financial performance in the coming quarters.
Peer comparison
Dec 31, 2024