Hess Corporation (HES)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 63.02% | 51.53% | 45.93% | 49.35% | 52.33% | 62.73% | 64.64% | 68.31% | 69.89% | 69.62% | 67.49% | 62.70% | 60.81% | 54.29% | 47.41% | 38.44% | 26.81% | 28.65% | 33.21% | 41.91% |
| 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% |
| Pretax margin | 33.90% | 32.34% | 32.98% | 28.77% | 23.51% | 26.79% | 26.65% | 31.37% | 32.51% | 30.49% | 28.93% | 21.97% | 19.94% | 14.75% | 7.74% | 1.04% | -61.07% | -58.84% | -51.76% | -37.96% |
| Net profit margin | 21.56% | 20.77% | 21.47% | 17.60% | 13.15% | 14.05% | 13.73% | 17.73% | 18.51% | 17.54% | 15.80% | 9.18% | 7.48% | 3.00% | -2.70% | -7.83% | -66.27% | -63.99% | -58.35% | -45.66% |
The profitability ratios of Hess Corporation have shown fluctuations over the periods indicated.
1. Gross profit margin: The gross profit margin has generally increased from around 41.91% in March 2020 to a peak of 69.89% in December 2022, but then declined to 63.02% by the end of December 2024. This indicates the company's ability to generate profits after accounting for direct costs of goods sold.
2. Operating profit margin: The operating profit margin started off negative in mid-2020 but showed a consistent upward trend, reaching a high of 42.68% by December 2024. This demonstrates the company's efficiency in managing its operating expenses to generate profits.
3. Pretax margin: The pretax margin also exhibited an increasing trend over the periods analyzed, showing an improvement in profitability before accounting for taxes. The margin increased from -61.07% in December 2020 to 33.90% in December 2024, indicating better operational performance.
4. Net profit margin: The net profit margin, which reflects the final profitability after all expenses, showed a similar increasing trend from negative margins in 2020 to positive margins in 2021 onwards, reaching 21.56% by December 2024. This signifies an improvement in the company's overall profitability and financial health.
Overall, the profitability ratios of Hess Corporation have shown a positive trajectory over the analyzed periods, with improvements in gross, operating, pretax, and net profit margins, indicating better revenue generation, cost management, and overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 10.43% | 10.06% | 10.25% | 8.12% | 5.76% | 6.32% | 6.64% | 9.23% | 9.65% | 8.61% | 6.91% | 3.66% | 2.72% | 1.01% | -0.84% | -2.15% | -16.43% | -16.96% | -16.27% | -13.83% |
| Return on total capital | 41.17% | 41.72% | 42.70% | 38.45% | 33.66% | 38.01% | 41.34% | 49.81% | 51.70% | 49.73% | 43.67% | 36.72% | 33.16% | 26.46% | 18.22% | 7.82% | -6.39% | -6.69% | -4.47% | 1.61% |
| Return on equity (ROE) | 24.24% | 24.40% | 25.23% | 20.35% | 15.38% | 16.99% | 17.86% | 24.90% | 26.26% | 24.66% | 20.52% | 11.48% | 8.87% | 3.51% | -2.93% | -7.26% | -57.64% | -54.39% | -49.73% | -39.81% |
Based on the provided data, let's analyze the profitability ratios of Hess Corporation:
1. Operating return on assets (Operating ROA):
Hess Corporation's Operating ROA has shown significant improvement over the quarters, increasing from 0.60% at March 31, 2020, to 20.64% at December 31, 2024. This indicates the company's ability to generate profits from its core operations efficiently.
2. Return on assets (ROA):
The Return on Assets for Hess Corporation has also exhibited a positive trend, rising from -13.83% at March 31, 2020, to 10.43% at December 31, 2024. This signifies an improvement in the company's profitability in relation to its total assets.
3. Return on total capital:
The Return on Total Capital has shown a consistent upward trajectory, reaching 41.17% at December 31, 2024, from -6.39% at December 31, 2020. This demonstrates the company's effectiveness in generating returns from all sources of capital.
4. Return on equity (ROE):
Hess Corporation's Return on Equity has also witnessed a positive trend, increasing from -39.81% at March 31, 2020, to 24.24% at December 31, 2024. This depicts the company's ability to generate returns for its shareholders over the years.
Overall, the profitability ratios of Hess Corporation have shown improvement, indicating the company's efficient utilization of assets and capital to generate profits for its shareholders.