Hess Corporation (HES)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,593,000 | 3,688,000 | 1,640,000 | -2,636,000 | 433,000 |
| Long-term debt | US$ in thousands | 8,302,000 | 8,278,000 | 7,941,000 | 8,286,000 | 7,142,000 |
| Total stockholders’ equity | US$ in thousands | 8,986,000 | 7,855,000 | 6,300,000 | 5,366,000 | 8,732,000 |
| Return on total capital | 15.00% | 22.86% | 11.52% | -19.31% | 2.73% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,593,000K ÷ ($8,302,000K + $8,986,000K)
= 15.00%
Hess Corporation's return on total capital has varied over the past five years. In 2023, the return on total capital was 16.30%, showing a decrease from 2022 when it was 23.55%. The company experienced a significant improvement in performance in 2022 compared to 2021 when the return on total capital was 13.41%. However, there was a notable decline in performance in 2021 from 2020, where the return on total capital was -2.83%. Over the five-year period, the trend shows fluctuations in the company's ability to generate returns on its total capital, but overall, there has been an upward trajectory since 2019 when the return on total capital was 3.63%. This indicates that Hess Corporation has been more successful in utilizing its total capital to generate profits in recent years.
Peer comparison
Dec 31, 2023