Liquidity ratios measure the company ability to meet its short-term obligations.

Liquidity Ratios (Summary)
Current Ratio
Quick Ratio
Cash Ratio

Hess Corp., liquidity ratios (quarterly data)

	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	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Current ratio	1.31	1.54	1.65	1.64	1.78	1.69	1.42	1.42	1.42	1.57	2.08	1.90	2.20	1.99	2.19	1.26	1.45	1.58	1.69	2.02	2.30	2.41	2.63
Quick ratio	1.16	1.35	1.43	1.52	1.63	1.51	1.26	1.28	1.28	1.36	1.70	1.60	1.39	1.43	1.48	1.08	1.27	1.40	1.50	1.68	2.14	2.05	2.48
Cash ratio	0.67	0.93	0.91	1.04	1.03	0.92	0.59	0.89	0.88	0.96	1.10	1.07	0.90	1.05	1.07	0.62	0.79	0.95	1.01	1.22	1.53	1.50	1.96

The liquidity ratios over the analyzed periods indicate notable fluctuations reflecting changes in the company's short-term financial health and ability to meet current obligations.

Current Ratio: The current ratio displays a declining trend from March 2018, starting at 2.63 and decreasing steadily to a low of 1.26 by December 2019, suggesting a reduction in current assets relative to current liabilities during this period. There is a partial recovery afterward, with ratios fluctuating between approximately 1.3 and 2.2 from 2020 through mid-2023. However, a noticeable downward movement resumes toward September 2023, reaching 1.31, indicating a somewhat tightened liquidity position compared to earlier years.
Quick Ratio: The quick ratio follows a pattern similar to the current ratio but at lower levels, reflecting the exclusion of inventory from liquid assets. Starting at 2.48 in March 2018, it exhibits a general decline through end-2019, reaching around 1.08 by December 2019. The ratio stabilizes somewhat afterwards, fluctuating in a range between 1.16 and 1.7 through the subsequent quarters up to September 2023. The decreasing trend toward the later periods, reaching 1.16, indicates a moderate reduction in highly liquid assets relative to current liabilities.
Cash Ratio: The cash ratio demonstrates the most volatility and is consistently lower than the other liquidity measures, reflecting the most conservative liquidity position focusing only on cash and cash equivalents. Beginning at 1.96 in March 2018, it declines sharply to 0.62 by December 2019. Post-2019, the ratio fluctuates between approximately 0.59 and 1.1, without establishing a clear upward or downward trend, ending near 0.67 in September 2023. This variability suggests fluctuating cash reserves, which may indicate varying operational cash flows or changes in cash management policies.

In summary, the liquidity measures reveal a general decline from 2018 through late 2019, reflecting potentially increasing short-term obligations or decreasing asset liquidity. Following this period, the ratios stabilize but remain below earlier levels, with occasional fluctuations pointing to periods of liquidity tightening. The company’s ability to maintain liquidity appears to have become more conservative with lower cash ratio levels, emphasizing a need to monitor cash reserves and short-term obligations going forward.

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Hess Corp., current ratio calculation (quarterly data)

	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	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in millions)
Current assets	3,916)	3,704)	3,799)	3,931)	4,123)	3,969)	3,266)	4,346)	3,892)	3,969)	3,522)	3,081)	3,136)	3,115)	4,270)	3,156)	3,398)	3,684)	3,834)	4,459)	4,501)	4,694)	5,014)
Current liabilities	2,996)	2,403)	2,308)	2,396)	2,312)	2,355)	2,303)	3,064)	2,749)	2,527)	1,690)	1,623)	1,426)	1,564)	1,947)	2,510)	2,344)	2,332)	2,271)	2,203)	1,958)	1,945)	1,904)
Liquidity Ratio
Current ratio¹	1.31	1.54	1.65	1.64	1.78	1.69	1.42	1.42	1.42	1.57	2.08	1.90	2.20	1.99	2.19	1.26	1.45	1.58	1.69	2.02	2.30	2.41	2.63
Benchmarks
Current Ratio, Competitors²
Chevron Corp.	1.25	1.43	1.43	1.47	1.40	1.31	1.43	1.26	1.28	1.17	1.11	1.18	1.26	1.14	1.01	—	—	—	—	—	—	—	—
ConocoPhillips	1.66	1.41	1.39	1.46	1.46	1.54	1.51	1.34	1.93	2.11	2.03	2.25	2.38	2.69	2.16	—	—	—	—	—	—	—	—
Exxon Mobil Corp.	1.42	1.48	1.46	1.41	1.34	1.16	1.07	1.04	0.90	0.85	0.80	0.80	0.86	0.93	0.78	—	—	—	—	—	—	—	—
Occidental Petroleum Corp.	0.92	1.00	1.09	1.15	1.10	1.07	1.16	1.23	1.08	1.34	1.17	1.07	1.02	0.85	1.18	—	—	—	—	—	—	—	—

¹ Q3 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 3,916 ÷ 2,996 = 1.31

² Click competitor name to see calculations.

The analysis of the quarterly financial data reveals several notable trends in the company's liquidity position over the examined periods.

Current Assets: Current assets exhibit a fluctuating pattern with a general downward trend from March 2018 until reaching a low point in December 2019. Subsequently, current assets recover notably in March 2020 but then experience variability, maintaining generally moderate levels through 2021 and 2022. The most recent quarters in 2023 show a slight decline followed by a mild rebound by September 2023.
Current Liabilities: Current liabilities show a steady increase from March 2018 through December 2019, peaking before declining substantially in the first quarters of 2020. This decline suggests possible repayment or restructuring during that period. However, starting mid-2020 to 2021, current liabilities trend upward again, reaching a significantly high level by the end of 2021. The liabilities then fluctuate moderately during 2022 and into 2023, with a marked increase noted in the third quarter of 2023.
Current Ratio: The current ratio follows the interplay between current assets and current liabilities, starting high at 2.63 in March 2018 and steadily decreasing to a low of 1.26 by December 2019. A notable rebound occurs in early 2020, with the ratio rising to 2.19 in March 2020. This improvement indicates a temporary strengthening of liquidity. However, the ratio declines again, oscillating between 1.3 and 2.1 through 2021 and 2022, showing some volatility in liquidity. In 2023, the ratio declines moderately, ending near 1.31 by September 2023, which points to tighter liquidity conditions compared to earlier years.
Overall Liquidity Insights: The data provides insight into the company's liquidity challenges and improvements over time. The initial decline in the current ratio until late 2019 suggests increasing liquidity constraints, which are temporarily alleviated in early 2020, possibly reflecting operational adjustments or financing activities. Despite this, post-2020 data indicates ongoing fluctuations, with the current ratio generally remaining below the levels observed prior to 2019. The recent downward movement in 2023 may warrant closer monitoring to ensure sufficient short-term financial flexibility. The consistent rise and variability in current liabilities could signal changing operational or financial strategies impacting working capital management.

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Hess Corp., quick ratio calculation (quarterly data)

	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	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents	2,018)	2,226)	2,100)	2,486)	2,384)	2,159)	1,370)	2,713)	2,419)	2,430)	1,866)	1,739)	1,285)	1,646)	2,080)	1,545)	1,863)	2,208)	2,300)	2,694)	3,004)	2,908)	3,726)
Accounts receivable	1,460)	1,019)	1,207)	1,162)	1,375)	1,406)	1,524)	1,211)	1,094)	1,002)	1,011)	860)	699)	596)	794)	1,170)	1,122)	1,060)	1,116)	1,001)	1,182)	1,075)	997)
Total quick assets	3,478)	3,245)	3,307)	3,648)	3,759)	3,565)	2,894)	3,924)	3,513)	3,432)	2,877)	2,599)	1,984)	2,242)	2,874)	2,715)	2,985)	3,268)	3,416)	3,695)	4,186)	3,983)	4,723)

Current liabilities	2,996)	2,403)	2,308)	2,396)	2,312)	2,355)	2,303)	3,064)	2,749)	2,527)	1,690)	1,623)	1,426)	1,564)	1,947)	2,510)	2,344)	2,332)	2,271)	2,203)	1,958)	1,945)	1,904)
Liquidity Ratio
Quick ratio¹	1.16	1.35	1.43	1.52	1.63	1.51	1.26	1.28	1.28	1.36	1.70	1.60	1.39	1.43	1.48	1.08	1.27	1.40	1.50	1.68	2.14	2.05	2.48
Benchmarks
Quick Ratio, Competitors²
Chevron Corp.	0.84	0.97	1.03	1.12	1.03	1.00	1.12	0.90	0.90	0.83	0.77	0.77	0.84	0.74	0.66	—	—	—	—	—	—	—	—
ConocoPhillips	1.46	1.19	1.20	1.27	1.27	1.34	1.29	1.10	1.66	1.86	1.81	1.98	2.04	2.29	1.72	—	—	—	—	—	—	—	—
Exxon Mobil Corp.	1.05	1.06	1.07	1.03	0.98	0.84	0.74	0.69	0.55	0.51	0.47	0.44	0.51	0.55	0.50	—	—	—	—	—	—	—	—
Occidental Petroleum Corp.	0.48	0.45	0.60	0.68	0.67	0.79	0.84	0.84	0.61	0.82	0.62	0.50	0.38	0.34	0.37	—	—	—	—	—	—	—	—

¹ Q3 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,478 ÷ 2,996 = 1.16

² Click competitor name to see calculations.

The analysis of the quarterly financial data reveals notable fluctuations in the key liquidity metrics over the observed periods.

Total quick assets: The total quick assets exhibit a declining trend from the beginning of 2018 through mid-2020, decreasing from 4,723 million USD in March 2018 to a low of 1,984 million USD in September 2020. Subsequently, quick assets recover progressively, peaking at 3,924 million USD in December 2021. Following this peak, there is some volatility, with values moving between approximately 2,894 million USD and 3,759 million USD up to September 2022, and ending at 3,478 million USD in the third quarter of 2023. This pattern suggests an initial contraction in liquid assets, followed by a recovery phase and moderate variability thereafter.
Current liabilities: Current liabilities show a generally upward trajectory over the entire period, beginning around 1,904 million USD in March 2018 and increasing to a peak of 3,064 million USD in December 2021. After this peak, liabilities decrease somewhat but remain elevated relative to early years, fluctuating around 2,300 to 3,000 million USD through to September 2023. This rising trend in current liabilities may indicate growing short-term obligations or operational scaling, which warrants monitoring for potential liquidity pressure.
Quick ratio: The quick ratio varies significantly across the quarters, starting at a strong level of 2.48 in March 2018, followed by a steady decline to a low of 1.08 in December 2019. This indicates a weakening short-term liquidity position during this phase, as quick assets decreased faster relative to current liabilities. A recovery ensues from early 2020, with the ratio climbing back above 1.6 by early 2021. However, after this rebound, the ratio trends downward again, ending at 1.16 in September 2023, suggesting a tightening liquidity stance over the most recent periods.

Overall, the data reflects periods of liquidity strain and recovery. Early declines in quick assets and the quick ratio alongside rising current liabilities suggest vulnerability which was somewhat alleviated in 2021. The more recent decrease in the quick ratio indicates that close attention should be maintained on the balance between liquid assets and short-term liabilities going forward.

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Hess Corp., cash ratio calculation (quarterly data)

	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	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018
Selected Financial Data (US$ in millions)
Cash and cash equivalents	2,018)	2,226)	2,100)	2,486)	2,384)	2,159)	1,370)	2,713)	2,419)	2,430)	1,866)	1,739)	1,285)	1,646)	2,080)	1,545)	1,863)	2,208)	2,300)	2,694)	3,004)	2,908)	3,726)
Total cash assets	2,018)	2,226)	2,100)	2,486)	2,384)	2,159)	1,370)	2,713)	2,419)	2,430)	1,866)	1,739)	1,285)	1,646)	2,080)	1,545)	1,863)	2,208)	2,300)	2,694)	3,004)	2,908)	3,726)

Current liabilities	2,996)	2,403)	2,308)	2,396)	2,312)	2,355)	2,303)	3,064)	2,749)	2,527)	1,690)	1,623)	1,426)	1,564)	1,947)	2,510)	2,344)	2,332)	2,271)	2,203)	1,958)	1,945)	1,904)
Liquidity Ratio
Cash ratio¹	0.67	0.93	0.91	1.04	1.03	0.92	0.59	0.89	0.88	0.96	1.10	1.07	0.90	1.05	1.07	0.62	0.79	0.95	1.01	1.22	1.53	1.50	1.96
Benchmarks
Cash Ratio, Competitors²
Chevron Corp.	0.18	0.32	0.47	0.52	0.42	0.32	0.38	0.21	0.24	0.27	0.26	0.25	0.35	0.33	0.30	—	—	—	—	—	—	—	—
ConocoPhillips	0.91	0.71	0.75	0.72	0.74	0.67	0.61	0.55	1.14	1.31	1.18	1.46	1.58	1.92	1.35	—	—	—	—	—	—	—	—
Exxon Mobil Corp.	0.46	0.48	0.49	0.43	0.41	0.24	0.15	0.12	0.08	0.06	0.06	0.08	0.16	0.22	0.18	—	—	—	—	—	—	—	—
Occidental Petroleum Corp.	0.07	0.07	0.16	0.13	0.16	0.14	0.22	0.33	0.23	0.48	0.26	0.24	0.18	0.10	0.17	—	—	—	—	—	—	—	—

¹ Q3 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,018 ÷ 2,996 = 0.67

² Click competitor name to see calculations.

The analysis of the quarterly financial indicators over the observed periods reveals several key trends in liquidity and balance sheet dynamics.

Total cash assets: Over the time span, total cash assets exhibit a generally fluctuating trend with notable declines and recoveries. Beginning at a high level of 3,726 million USD in the first quarter of 2018, cash balances generally trended downward until early 2020, reaching a low around 1,285 million USD in the third quarter of 2020. This was followed by a recovery phase through 2021, peaking around 2,713 million USD at the end of that year. In 2022 and early 2023, cash assets show moderate variations, declining somewhat in the first quarter of 2022, rebounding midyear, then gradually decreasing again toward the third quarter of 2023 to approximately 2,018 million USD. This pattern indicates periodic liquidity fluctuations possibly driven by operational or investment activities.
Current liabilities: Current liabilities demonstrate an overall increasing trend throughout the period analyzed. Beginning at 1,904 million USD in early 2018, liabilities rise steadily, peaking significantly in the fourth quarter of 2021 at 3,064 million USD. There is a slight easing observed in 2022, with values fluctuating around 2,300-2,400 million USD, followed by an increase again by the third quarter of 2023 reaching nearly 3,000 million USD. This persistent upward trend in liabilities could reflect increased short-term obligations or financing needs over time.
Cash ratio: The cash ratio, representing liquidity measured as cash assets relative to current liabilities, exhibits considerable variability and a general declining trend from 2018 through to late 2019. Starting from a high of 1.96 in the first quarter of 2018, it falls below 1.0 multiple times, reaching lows near 0.59 at the end of 2022, indicating periods where cash assets were less than current liabilities. Some recovery occurs intermittently, for example, modest improvements in early 2020 and again mid-2021, but the ratio fails to sustain values above 1 consistently through later periods. The decline reflects a tightening in liquidity relative to short-term obligations.

In summary, the data suggest a company experiencing liquidity pressures as total cash assets face erosion relative to rising current liabilities, leading to a weakening cash ratio over time. Although periodic recoveries in cash assets occur, they are generally insufficient to offset the growth in short-term liabilities fully. This situation warrants attention concerning cash management and short-term financial strategy to maintain adequate liquidity buffers.

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Hess Corp. (NYSE:HES)

Analysis of Liquidity Ratios
Quarterly Data

Liquidity Ratios (Summary)

Current Ratio

Quick Ratio

Cash Ratio

Hess Corp. (NYSE:HES)

Analysis of Liquidity Ratios Quarterly Data

Liquidity Ratios (Summary)

Current Ratio

Quick Ratio

Cash Ratio

Analysis of Liquidity Ratios
Quarterly Data