Hess Corporation (HES)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.36 | 0.38 | 0.38 | 0.38 | 0.38 | 0.39 | 0.40 | 0.39 | 0.41 | 0.40 | 0.44 | 0.44 | 0.44 | 0.42 | 0.40 | 0.33 | 0.30 | 0.30 | 0.30 |
| Debt-to-capital ratio | 0.48 | 0.49 | 0.51 | 0.51 | 0.51 | 0.52 | 0.54 | 0.56 | 0.56 | 0.59 | 0.58 | 0.60 | 0.61 | 0.58 | 0.56 | 0.53 | 0.45 | 0.42 | 0.41 | 0.41 |
| 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 |
| Financial leverage ratio | 2.67 | 2.69 | 2.69 | 2.70 | 2.76 | 2.86 | 2.97 | 3.14 | 3.26 | 3.47 | 3.49 | 3.37 | 3.51 | 3.21 | 3.06 | 2.88 | 2.49 | 2.43 | 2.33 | 2.32 |
The solvency ratios of Hess Corporation over the past eight quarters provide insights into the company's ability to meet its long-term obligations. The debt-to-assets ratio has fluctuated between 0.37 and 0.42 during this period, indicating that, on average, approximately 37% to 42% of the company's assets are financed by debt.
The debt-to-capital ratio, which reflects the proportion of total capitalization provided by debt, has ranged from 0.49 to 0.57. This suggests that debt accounts for around 49% to 57% of the company's total capital structure.
The debt-to-equity ratio, a measure of financial leverage, has shown a wider range from 0.98 to 1.31. This indicates that Hess Corporation has varied between having almost an equal amount of debt and equity to being more heavily reliant on debt to fund its operations over the quarters in question.
The financial leverage ratio, a measure of the extent to which the company relies on debt to finance its operations, has also displayed fluctuations, ranging from 2.67 to 3.14. This indicates that the company has leveraged its operations with debt to different extents during the periods reviewed.
Overall, the trends in these solvency ratios suggest that Hess Corporation has managed its debt levels and capital structure over the quarters, with some fluctuations observed. Investors and stakeholders may consider monitoring these ratios to assess the company's solvency and risk profile comprehensively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.42 | 5.75 | 5.83 | 7.29 | 7.48 | 6.88 | 5.78 | 3.87 | 3.41 | 2.37 | 1.34 | 0.54 | -5.63 | -6.15 | -6.29 | -5.54 | 1.14 | 1.47 | 1.90 | 1.54 |
Hess Corporation's interest coverage ratio has shown a generally improving trend over the past eight quarters, ranging from 4.63 in Q1 2022 to 7.60 in Q1 2023. This indicates the company's ability to meet its interest obligations with its operating income. With the ratio consistently above 1, the company has sufficient earnings to cover its interest expenses, reflecting a healthy financial position. The recent peak in Q1 2023 suggests an enhanced capacity to service debt and may signify improved profitability or efficiency in operations. Overall, Hess Corporation's interest coverage ratio demonstrates a favorable financial stability and ability to manage debt obligations effectively.