Return on Assets (ROA)
since 2005
Calculation
Hess Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Hess Corporation1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 9.66% | = | 100 | × | 2,096) | ÷ | 21,695) |
| Dec 31, 2021 | 2.72% | = | 100 | × | 559) | ÷ | 20,515) |
| Dec 31, 2020 | -16.43% | = | 100 | × | (3,093) | ÷ | 18,821) |
| Dec 31, 2019 | -1.87% | = | 100 | × | (408) | ÷ | 21,782) |
| Dec 31, 2018 | -1.32% | = | 100 | × | (282) | ÷ | 21,433) |
| Dec 31, 2017 | -17.63% | = | 100 | × | (4,074) | ÷ | 23,112) |
| Dec 31, 2016 | -21.42% | = | 100 | × | (6,132) | ÷ | 28,621) |
| Dec 31, 2015 | -8.94% | = | 100 | × | (3,056) | ÷ | 34,195) |
| Dec 31, 2014 | 6.01% | = | 100 | × | 2,317) | ÷ | 38,578) |
| Dec 31, 2013 | 11.82% | = | 100 | × | 5,052) | ÷ | 42,754) |
| Dec 31, 2012 | 4.66% | = | 100 | × | 2,025) | ÷ | 43,441) |
| Dec 31, 2011 | 4.35% | = | 100 | × | 1,703) | ÷ | 39,136) |
| Dec 31, 2010 | 6.00% | = | 100 | × | 2,125) | ÷ | 35,396) |
| Dec 31, 2009 | 2.51% | = | 100 | × | 740) | ÷ | 29,465) |
| Dec 31, 2008 | 8.25% | = | 100 | × | 2,360) | ÷ | 28,589) |
| Dec 31, 2007 | 7.01% | = | 100 | × | 1,832) | ÷ | 26,131) |
| Dec 31, 2006 | 8.55% | = | 100 | × | 1,916) | ÷ | 22,404) |
| Dec 31, 2005 | 6.50% | = | 100 | × | 1,242) | ÷ | 19,115) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2022 is characterized by three distinct phases: a period of asset expansion and generally stable profitability, a significant multi-year period of contraction and net losses, and a recent recovery phase. The Return on Assets (ROA) fluctuates significantly, reflecting high sensitivity to net income volatility relative to the asset base.
- Net Income and Profitability Trends
- From 2005 to 2014, net income remained consistently positive, reaching a peak of 5,052 million USD in 2013. However, a sharp reversal occurred in 2015, initiating a six-year streak of losses that culminated in a maximum deficit of 6,132 million USD in 2016. Profitability returned in 2021 and strengthened in 2022, with net income reaching 2,096 million USD.
- Total Asset Base Evolution
- A consistent upward trend in total assets was observed between 2005 and 2012, growing from 19,115 million USD to a peak of 43,441 million USD. This growth was followed by a steady contraction through 2020, where assets reached a low of 18,821 million USD. By 2022, the asset base began to stabilize and slightly expand to 21,695 million USD.
- Return on Assets (ROA) Analysis
- The ROA remained positive for the first decade of the period, fluctuating between a low of 2.51% in 2009 and a high of 11.82% in 2013. A severe deterioration is evident from 2015 to 2020, with the ratio plummeting to -21.42% in 2016. This negative trajectory persisted until 2021, when ROA returned to a positive 2.72%, followed by a significant recovery to 9.66% in 2022.
The correlation between the contraction of the asset base and the period of net losses suggests a significant strategic restructuring or impairment phase between 2015 and 2020. The recovery observed in 2021 and 2022 indicates a return to operational efficiency, as the ROA has returned to levels comparable to those seen during the 2005-2014 growth cycle, despite a smaller overall asset base.
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Comparison to Competitors
Hess Corp., ROA, long-term trends, comparison to competitors
| Hess Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2022 | 9.66% | 13.76% | 19.91% | 15.10% |
| Dec 31, 2021 | 2.72% | 6.52% | 8.91% | 6.80% |
| Dec 31, 2020 | -16.43% | -2.31% | -4.31% | -6.74% |
| Dec 31, 2019 | -1.87% | 1.23% | 10.20% | 3.95% |
| Dec 31, 2018 | -1.32% | 5.84% | 8.94% | 6.02% |
| Dec 31, 2017 | -17.63% | 3.62% | -1.17% | 5.65% |
| Dec 31, 2016 | -21.42% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | -8.94% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | 6.01% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | 11.82% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | 4.66% | 11.24% | 7.19% | 13.45% |
| Dec 31, 2011 | 4.35% | 12.84% | 8.12% | 12.40% |
| Dec 31, 2010 | 6.00% | 10.30% | 7.27% | 10.07% |
| Dec 31, 2009 | 2.51% | 6.37% | 3.18% | 8.26% |
| Dec 31, 2008 | 8.25% | 14.85% | -11.90% | 19.83% |
| Dec 31, 2007 | 7.01% | 12.56% | 6.69% | 16.78% |
| Dec 31, 2006 | 8.55% | 12.92% | 9.44% | 18.04% |
| Dec 31, 2005 | 6.50% | 11.20% | 12.64% | 17.34% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Hess Corp., ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Hess Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2022 | 9.66% | 15.25% |
| Dec 31, 2021 | 2.72% | 6.99% |
| Dec 31, 2020 | -16.43% | -4.83% |
| Dec 31, 2019 | -1.87% | 3.65% |
| Dec 31, 2018 | -1.32% | 6.26% |
| Dec 31, 2017 | -17.63% | 4.15% |
| Dec 31, 2016 | -21.42% | 0.55% |
| Dec 31, 2015 | -8.94% | 2.33% |
| Dec 31, 2014 | 6.01% | 8.01% |
| Dec 31, 2013 | 11.82% | 8.79% |
| Dec 31, 2012 | 4.66% | 11.62% |
| Dec 31, 2011 | 4.35% | 11.59% |
| Dec 31, 2010 | 6.00% | 9.45% |
| Dec 31, 2009 | 2.51% | 6.29% |
| Dec 31, 2008 | 8.25% | 9.80% |
| Dec 31, 2007 | 7.01% | 12.52% |
| Dec 31, 2006 | 8.55% | 13.98% |
| Dec 31, 2005 | 6.50% | 14.45% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Hess Corp., ROA, long-term trends, comparison to industry (energy)
| Hess Corp. | Energy | |
|---|---|---|
| Dec 31, 2022 | 9.66% | 14.84% |
| Dec 31, 2021 | 2.72% | 6.84% |
| Dec 31, 2020 | -16.43% | -6.08% |
| Dec 31, 2019 | -1.87% | 1.97% |
| Dec 31, 2018 | -1.32% | 5.95% |
| Dec 31, 2017 | -17.63% | 3.55% |
| Dec 31, 2016 | -21.42% | 0.27% |
| Dec 31, 2015 | -8.94% | 2.39% |
| Dec 31, 2014 | 6.01% | 8.02% |
| Dec 31, 2013 | 11.82% | 8.90% |
| Dec 31, 2012 | 4.66% | 11.40% |
| Dec 31, 2011 | 4.35% | 11.40% |
| Dec 31, 2010 | 6.00% | 9.36% |
| Dec 31, 2009 | 2.51% | 6.46% |
| Dec 31, 2008 | 8.25% | 10.21% |
| Dec 31, 2007 | 7.01% | 12.80% |
| Dec 31, 2006 | 8.55% | 14.07% |
| Dec 31, 2005 | 6.50% | 14.36% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).