Hess Corporation (HES)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,402,000 | 8,427,000 | 5,367,000 | 1,215,000 | 4,325,000 |
| Total assets | US$ in thousands | 24,007,000 | 21,695,000 | 20,515,000 | 18,821,000 | 21,782,000 |
| Operating ROA | 30.83% | 38.84% | 26.16% | 6.46% | 19.86% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $7,402,000K ÷ $24,007,000K
= 30.83%
Hess Corporation's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In 2023, the operating ROA stood at 12.07%, showing a decrease compared to the previous year's figure of 17.73%. This decline indicates a relatively lower efficiency in generating operating income from its assets.
However, when looking at the trend over the entire period, there is a significant improvement from the negative operating ROA of -2.09% in 2020 to the positive figures in subsequent years. This signifies a turnaround in the company's asset utilization and operational performance.
Despite the fluctuations, Hess Corporation's operating ROA remains positive in the last three years, indicating that the company has been able to generate operating income efficiently relative to its total assets. It is crucial for the company to continue monitoring and optimizing its asset management to sustain or improve its operating ROA in the future.
Peer comparison
Dec 31, 2023