Hess Corporation (HES)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.32 | 2.42 | 2.46 | 2.50 | 2.67 | 2.69 | 2.69 | 2.70 | 2.72 | 2.86 | 2.97 | 3.14 | 3.26 | 3.47 | 3.49 | 3.37 | 3.51 | 3.21 | 3.06 | 2.88 |
The solvency ratios of Hess Corporation, as reflected in the provided data, show a consistently low level of indebtedness relative to its assets, capital, and equity over the period from March 31, 2020, to December 31, 2024.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remained stable at 0.00 throughout this period, indicating that the company has not taken on significant debt in relation to its total assets, total capital, or shareholder equity. This suggests that the company's assets are predominantly financed by equity rather than debt, which may indicate a strong financial position and lower financial risk.
Furthermore, the Financial Leverage Ratio decreased steadily from 2.88 on March 31, 2020, to 2.32 on December 31, 2024. The declining trend in this ratio signifies that the company has been reducing its reliance on debt financing in relation to its equity, which is a positive indicator of financial stability and sound capital structure management.
In conclusion, based on the solvency ratios provided, Hess Corporation appears to maintain a conservative approach to leverage and debt management, with a strong financial position and effective capital structure that is conducive to long-term financial health and stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.42 | 9.94 | 9.51 | 7.79 | 6.09 | 6.75 | 6.92 | 8.22 | 8.37 | 7.67 | 6.36 | 4.76 | 4.34 | 3.10 | 2.12 | 0.93 | -0.73 | -0.89 | -0.69 | 0.29 |
Hess Corporation's interest coverage ratio has shown fluctuations over the past few years, ranging from negative values to positive values. The interest coverage ratio is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense. A ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses, which could raise concerns about its ability to meet its debt obligations.
From March 31, 2020, to September 30, 2021, the interest coverage ratio was consistently below 1, indicating a high level of financial risk for the company during this period as it struggled to cover its interest expenses with its earnings. However, there has been a marked improvement in the ratio from September 30, 2021, onwards, with the ratio consistently exceeding 1. This suggests that the company's earnings have been sufficient to cover its interest expenses and indicates a stronger financial position in recent quarters.
The most recent data as of December 31, 2024, shows the interest coverage ratio at 11.42, which indicates that the company's earnings are significantly higher than its interest expenses, reflecting a healthier financial position. Overall, improving interest coverage ratios over time demonstrate a positive trend in the company's ability to meet its interest obligations and reduce financial risk.