Hess Corporation (HES)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,382,000 | 2,096,000 | 559,000 | -3,093,000 | -408,000 |
| Total stockholders’ equity | US$ in thousands | 8,986,000 | 7,855,000 | 6,300,000 | 5,366,000 | 8,732,000 |
| ROE | 15.38% | 26.68% | 8.87% | -57.64% | -4.67% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,382,000K ÷ $8,986,000K
= 15.38%
Hess Corporation's return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE stood at 15.38%, indicating a moderate return on equity for that year. This represented a decrease from the previous year's ROE of 26.68%, suggesting a decline in the company's profitability and efficiency in generating returns for shareholders.
The ROE of 8.87% in 2021 was relatively low, indicating weaker performance compared to the prior year. The negative ROE of -57.64% in 2020 reflects a significant loss, highlighting financial challenges and inefficiencies during that period. Similarly, in 2019, the ROE was negative at -4.72%, further illustrating a period of poor financial performance and value creation for shareholders.
Overall, the trend in Hess Corporation's ROE demonstrates volatility and inconsistency in its profitability and efficiency in utilizing shareholders' equity to generate returns. It is essential for stakeholders to monitor and assess the company's performance to identify and address factors impacting its ROE to ensure sustainable and competitive returns in the future.
Peer comparison
Dec 31, 2023