Hess Corporation (HES)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 26,551,000 | 26,233,000 | 25,810,000 | 24,719,000 | 24,007,000 | 23,201,000 | 22,230,000 | 21,938,000 | 21,729,000 | 21,643,000 | 21,180,000 | 19,798,000 | 20,515,000 | 19,490,000 | 19,131,000 | 18,951,000 | 18,821,000 | 18,969,000 | 19,546,000 | 20,717,000 |
| Operating ROA | 20.64% | 17.42% | 17.09% | 15.27% | 12.52% | 14.16% | 15.38% | 18.47% | 18.99% | 16.95% | 13.58% | 10.39% | 8.25% | 5.96% | 4.23% | 1.40% | -2.09% | -2.35% | -1.35% | 0.60% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,481,000K ÷ $26,551,000K
= 20.64%
Hess Corporation's operating return on assets (operating ROA) has shown a fluctuating trend over the periods from March 31, 2020, to December 31, 2024. The operating ROA started at 0.60% on March 31, 2020, then declined to negative figures in the subsequent quarters, reaching a low of -2.35% on September 30, 2020. However, there was a turnaround in the performance as the operating ROA started to improve, turning positive again at 1.40% on March 31, 2021.
The positive momentum continued, with significant increases in operating ROA in the following quarters, reaching 18.99% on December 31, 2022. This indicated improved efficiency in generating operating income relative to the total assets employed. Despite a slight decrease to 12.52% on December 31, 2023, the operating ROA rebounded strongly to 20.64% by December 31, 2024.
The rising trend in operating ROA signifies enhanced operational efficiency and profitability for Hess Corporation over the period under consideration. This improvement can be attributed to effective cost management, increased revenue generation, or a combination of both. It indicates that the company has been able to generate higher returns on its assets, reflecting positively on its operational performance and overall financial health.
Peer comparison
Dec 31, 2024