Hess Corporation (HES)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,906,000 | 5,028,000 | 4,127,000 | 2,089,000 | -343,000 |
| Total assets | US$ in thousands | 26,551,000 | 24,007,000 | 21,729,000 | 20,515,000 | 18,821,000 |
| Operating ROA | 37.31% | 20.94% | 18.99% | 10.18% | -1.82% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $9,906,000K ÷ $26,551,000K
= 37.31%
The operating return on assets (operating ROA) for Hess Corporation has shown a notable upward trend over the years, reflecting an improvement in the company's efficiency in generating profits from its assets. Starting at -1.82% on December 31, 2020, the operating ROA has steadily climbed to 10.18% in 2021, further increasing to 18.99% in 2022, 20.94% in 2023, and reaching a significant peak of 37.31% by December 31, 2024.
This positive trajectory indicates that Hess Corporation has been able to enhance its operational performance and asset utilization, resulting in a higher return on the assets employed in its business operations. The rising trend in operating ROA suggests that the company has been efficiently managing its resources to generate greater operating profits relative to its asset base over the years. This may signify improving operational efficiency, better cost management, and possibly strategic investments that have contributed to the company's profitability and overall financial health.
Peer comparison
Dec 31, 2024