Hess Corporation (HES)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,354,000 | 2,471,000 | 3,681,000 | 1,490,000 | -2,850,000 |
| Revenue | US$ in thousands | 13,018,000 | 10,511,000 | 11,324,000 | 7,473,000 | 4,667,000 |
| Pretax margin | 33.45% | 23.51% | 32.51% | 19.94% | -61.07% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $4,354,000K ÷ $13,018,000K
= 33.45%
Hess Corporation's pre-tax margin has shown a significant improvement over the past few years, starting at a negative -61.07% on December 31, 2020, and steadily increasing to 19.94% by the end of 2021. This positive trend continued as the pre-tax margin further rose to 32.51% by December 31, 2022, indicating increased efficiency in managing expenses relative to revenue.
However, there was a slight dip in the pre-tax margin to 23.51% by the end of 2023, possibly due to changes in operating costs or revenue factors. This was followed by a notable recovery, with the pre-tax margin reaching 33.45% by December 31, 2024, showcasing an improved ability to generate profits before accounting for taxes.
Overall, the consistent upward trajectory of Hess Corporation's pre-tax margin reflects successful cost management strategies and revenue growth over the years, contributing positively to the company's profitability and financial health.
Peer comparison
Dec 31, 2024