Hess Corporation (HES)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		0.92	0.95	1.02	1.03	1.05	1.10	1.17	1.26	1.26	1.43	1.41	1.47	1.54	1.40	1.28	1.14	0.82	0.73	0.70	0.70

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,302,000K ÷ $8,986,000K
= 0.92

The debt-to-equity ratio of Hess Corporation has shown a fluctuating trend over the past eight quarters. The ratio has ranged from 0.98 to 1.31 during this period, indicating varying levels of financial leverage.

In recent quarters, the debt-to-equity ratio has been on an upward trajectory, reaching its peak at 1.31 in Q1 2022. This suggests that the company has been increasing its reliance on debt financing relative to equity.

While a higher debt-to-equity ratio can indicate higher financial risk, it can also signify potential for higher returns for shareholders if the company can effectively utilize the borrowed funds. It is essential for stakeholders to closely monitor the trend of this ratio to assess the company's long-term financial stability and growth prospects.