Hess Corporation (HES)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,593,000 | 2,795,000 | 2,881,000 | 3,596,000 | 3,688,000 | 3,373,000 | 2,834,000 | 1,885,000 | 1,640,000 | 1,135,000 | 632,000 | 255,000 | -2,636,000 | -2,737,000 | -2,623,000 | -2,190,000 | 433,000 | 563,000 | 747,000 | 606,000 |
| Long-term debt | US$ in thousands | 8,302,000 | 8,241,000 | 8,459,000 | 8,382,000 | 8,278,000 | 8,303,000 | 8,332,000 | 7,934,000 | 7,941,000 | 7,993,000 | 7,712,000 | 8,273,000 | 8,286,000 | 8,280,000 | 8,205,000 | 8,191,000 | 7,142,000 | 6,526,000 | 6,511,000 | 6,550,000 |
| Total stockholders’ equity | US$ in thousands | 8,986,000 | 8,631,000 | 8,272,000 | 8,133,000 | 7,855,000 | 7,559,000 | 7,136,000 | 6,308,000 | 6,300,000 | 5,609,000 | 5,488,000 | 5,616,000 | 5,366,000 | 5,916,000 | 6,395,000 | 7,200,000 | 8,732,000 | 8,908,000 | 9,294,000 | 9,342,000 |
| Return on total capital | 15.00% | 16.57% | 17.22% | 21.77% | 22.86% | 21.26% | 18.32% | 13.24% | 11.52% | 8.34% | 4.79% | 1.84% | -19.31% | -19.28% | -17.97% | -14.23% | 2.73% | 3.65% | 4.73% | 3.81% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 shown a decreasing trend throughout 2022 and 2023. The company's return on total capital was 15.51% in Q1 2022, reaching a peak of 23.55% in Q4 2022, and then gradually declining to 16.30% in Q4 2023. This indicates that the company's ability to generate profits from the total capital employed has weakened over time. It is important for the company to closely monitor and evaluate the efficiency and effectiveness of its capital allocation and investment strategies to improve its return on total capital in the future.
Peer comparison
Dec 31, 2023