Hess Corporation (HES)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 26,551,000 | 24,007,000 | 21,729,000 | 20,515,000 | 18,821,000 |
| Total stockholders’ equity | US$ in thousands | 11,216,000 | 8,986,000 | 7,982,000 | 6,300,000 | 5,366,000 |
| Financial leverage ratio | 2.37 | 2.67 | 2.72 | 3.26 | 3.51 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,551,000K ÷ $11,216,000K
= 2.37
The financial leverage ratio of Hess Corporation has shown a declining trend over the past five years. In particular, from December 31, 2020, to December 31, 2024, the ratio decreased from 3.51 to 2.37. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A decreasing financial leverage ratio is generally viewed positively by investors and creditors as it signifies a lower level of financial risk and greater financial stability. Overall, the decreasing trend in the financial leverage ratio suggests that Hess Corporation has been managing its debt levels effectively and improving its financial health over the years.
Peer comparison
Dec 31, 2024