Hess Corporation (HES)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.48 | 0.51 | 0.56 | 0.61 | 0.45 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,302,000K ÷ ($8,302,000K + $8,986,000K)
= 0.48
Hess Corporation's debt-to-capital ratio has exhibited a declining trend over the last five years, decreasing from 0.61 in 2020 to 0.49 in 2023. This suggests that the company has been able to reduce its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio indicates a healthier financial position, as it signifies a lower level of debt compared to the company's overall capital structure. It is important to note that the decreasing trend in the ratio could be indicative of prudent financial management and improved creditworthiness. However, further analysis of the company's debt levels, capital structure, and overall financial performance is recommended to gain a more comprehensive understanding of its financial health and risk profile.
Peer comparison
Dec 31, 2023