Hess Corporation (HES)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,007,000 | 21,695,000 | 20,515,000 | 18,821,000 | 21,782,000 |
| Total stockholders’ equity | US$ in thousands | 8,986,000 | 7,855,000 | 6,300,000 | 5,366,000 | 8,732,000 |
| Financial leverage ratio | 2.67 | 2.76 | 3.26 | 3.51 | 2.49 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,007,000K ÷ $8,986,000K
= 2.67
The financial leverage ratio of Hess Corporation has exhibited fluctuation over the past five years. In 2023, the financial leverage ratio stood at 2.67, representing a decrease from the previous year's 2.76. This decrease could indicate a reduction in the company's reliance on debt to finance its operations.
Comparing to the ratio of 3.26 in 2021 and 3.51 in 2020, there has been a downward trend in the financial leverage ratio, which suggests a decreasing level of financial risk associated with the company's capital structure over the years.
In 2019, the ratio was 2.49, lower than the recent years, signifying a relatively lower level of financial risk and leverage at that point in time.
Overall, the trend in the financial leverage ratio of Hess Corporation implies fluctuations in the company's debt levels and capital structure management over the years, with recent years showing a reduction in leverage and potential financial risk.
Peer comparison
Dec 31, 2023