Hess Corporation (HES)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,769,000	1,382,000	2,096,000	890,000	-2,839,000
Total stockholders’ equity	US$ in thousands	11,216,000	8,986,000	7,982,000	6,300,000	5,366,000
ROE		24.69%	15.38%	26.26%	14.13%	-52.91%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,769,000K ÷ $11,216,000K
= 24.69%

Hess Corporation's return on equity (ROE) has shown significant fluctuations over the years, based on the data provided.

In 2020, the ROE was negative at -52.91%, indicating that the company's net income was not sufficient to cover shareholder's equity, which could be concerning for investors. However, the ROE improved substantially in 2021 to 14.13%, suggesting a positive turnaround in the company's profitability and efficiency in generating returns for shareholders.

The trend continued to strengthen in 2022, with a notable increase in ROE to 26.26%, reflecting further enhancement in the company's financial performance and effective utilization of equity investments. However, there was a slight dip in 2023, with the ROE falling to 15.38%, indicating a potential slowdown in profitability growth or less efficient use of equity.

Hess Corporation managed to bounce back in 2024, achieving a ROE of 24.69%, showing an improvement in profitability and efficiency in generating returns on equity investment. Overall, while the company experienced fluctuations in ROE over the years, there is evidence of both challenges and successes in managing and optimizing shareholder equity. Vigilant monitoring of ROE trends is essential for assessing the company's performance and potential investor returns.