Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
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Solvency Ratios (Summary)
Hess Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The financial ratios for the periods analyzed reveal several notable trends in the company's leverage and coverage metrics over time.
- Debt to Equity Ratios
- The debt to equity ratio shows a gradual increase from 0.62 in March 2018, peaking at 1.59 by December 2020. Subsequently, it declines steadily, reaching 1.01 by September 2023. When including operating lease liabilities, the trend is similar but exhibits slightly higher values throughout the period, peaking at 1.69 in December 2020 before decreasing to 1.08 in the latest quarter.
- Debt to Capital Ratios
- Debt to capital ratios also follow a trend of increase until late 2020, with a rise from 0.38 in March 2018 to approximately 0.61-0.63 around December 2020. After this peak, ratios modestly decline to about 0.50 by September 2023. Including operating lease liabilities results in slightly higher peak ratios around 0.62 and a similar subsequent decline to 0.52.
- Debt to Assets Ratios
- Debt to assets ratios remain relatively stable in the earlier years, around 0.30–0.31, with a consistent rise starting in late 2019 and peaking at 0.45 in December 2020. Thereafter, the ratio gradually decreases to 0.38 by the latest quarter. Including operating leases results in higher ratios, rising from approximately 0.30 to 0.48 at the end of 2020, followed by a decline to 0.40 in September 2023.
- Financial Leverage
- Financial leverage steadily increases from 2.08 in early 2018 to a peak of 3.51 in December 2020. Since then, it exhibits a decreasing pattern, dropping to 2.69 by September 2023, indicating a reduction in leverage over the last few years following the peak.
- Interest Coverage
- Interest coverage data starts showing values only from September 2018, with a gradual increase from 1.55 to 2.32 by June 2019, then fluctuates downward to negative values between March and December 2020, suggesting a period of financial strain or increased interest burden. From March 2021 onwards, interest coverage improves significantly, rising to 8.19 in September 2023, indicating improved ability to cover interest expenses.
Overall, the company demonstrates a trend of increasing leverage and financial risk measures from 2018 until late 2020, followed by a consistent deleveraging phase through 2023. The significant negative interest coverage during 2020 suggests temporary financial difficulties, which have been largely mitigated in subsequent periods as coverage ratios improved substantially. The inclusion of operating lease liabilities consistently results in higher leverage ratios, reinforcing the impact of lease obligations on the company's financial structure.
Debt Ratios
Coverage Ratios
Debt to Equity
Hess Corp., debt to equity 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 portion of long-term debt | ||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||||
| Long-term finance lease obligations | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Total Hess Corporation stockholders’ equity | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to equity = Total debt ÷ Total Hess Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several important trends concerning debt levels, equity values, and leverage ratios over the analyzed periods.
- Total debt
- Total debt showed a generally increasing trend from the first quarter of 2018 through the end of 2023. Initial values at around 6,568 million USD gradually rose, peaking notably between 2019 and 2021, where debt hovered close to or above 8,400 million USD. After this peak, debt levels stabilized, remaining slightly above 8,500 million USD towards the latter quarters of 2023. This indicates a significant buildup of debt over the years, with a plateau occurring in the most recent periods.
- Total stockholders’ equity
- Stockholders’ equity experienced a decline from early 2018, dropping from approximately 10,605 million USD to a low of around 5,366 million USD by the end of 2020. After this downturn, equity began to recover steadily, climbing through 2021 and gaining momentum in 2022 and 2023. By the end of the examined periods, equity rose to about 8,631 million USD. This pattern suggests a period of reduced equity possibly due to losses, share repurchases, or dividends, followed by a recovery likely driven by improved profitability or capital injections.
- Debt to equity ratio
- The debt to equity ratio followed a clear upward trend from about 0.62 in early 2018 to a peak of 1.59 by the end of 2020. This spike in leverage reflects the growing debt combined with the concurrent decline in equity. However, from 2021 onward, the ratio gradually declined, decreasing from around 1.51 to near parity at approximately 1.01 by late 2023. This reduction in leverage ratio corresponds with the recovery of equity and stabilization of debt levels, indicating an improvement in the company’s financial structure and balance between debt and equity financing.
In summary, the data demonstrates an initial phase of increasing financial leverage characterized by rising debt and falling equity, culminating in a peak debt to equity ratio by late 2020. Subsequent periods reflect a strategic improvement in equity and management of debt levels, leading to a healthier leverage profile by the end of 2023. These trends suggest oscillations in financial stability, with recent movements indicating stronger capitalization and enhanced capacity to manage debt obligations.
Debt to Equity (including Operating Lease Liability)
Hess Corp., debt to equity (including operating lease liability) 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 portion of long-term debt | ||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||||
| Long-term finance lease obligations | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Current portion of operating and finance lease obligations | ||||||||||||||||||||||||||||||
| Long-term operating lease obligations | ||||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||||
| Total Hess Corporation stockholders’ equity | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Hess Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial trends over the observed periods indicate significant fluctuations in debt, equity, and their relative proportions. Total debt (including operating lease liabilities) shows a generally increasing trend, rising from $6,568 million in March 2018 to $9,303 million by September 2023. There are some periods of slight decline or stabilization, but the overall trajectory is upward, reflecting a growing level of indebtedness.
Total stockholders’ equity of the corporation, conversely, exhibits a declining pattern from March 2018 through December 2020, falling from $10,605 million to $5,366 million. Starting in early 2021, equity begins to recover, gradually increasing to $8,631 million by September 2023. This partial recovery suggests improvements in retained earnings or capital contributions after a period of erosion.
The debt to equity ratio (including operating lease liabilities) corroborates these trends, moving from a relatively low 0.62 in March 2018 to a peak of 1.69 during December 2020, highlighting a period when debt substantially outpaced equity. Following this peak, the ratio demonstrates a steady decline, lowering to 1.08 by September 2023, indicating a gradual improvement in financial leverage through either debt reduction, equity enhancement, or a combination of both.
Overall, the data depict a period of increasing leverage culminating in late 2020, followed by a discernible de-leveraging phase through 2023. The fluctuations in equity and debt levels suggest the company experienced challenging conditions impacting net worth initially, with subsequent strategic adjustments or market improvements supporting a stabilization and modest strengthening of the equity position relative to debt.
- Total Debt
- Increased overall from $6.57 billion to $9.3 billion over the examined timeframe, with some minor fluctuations but a clear upward trend.
- Stockholders’ Equity
- Decreased substantially until the end of 2020, hitting a low of approximately $5.37 billion, then progressively increased, closing at $8.63 billion by the third quarter of 2023.
- Debt to Equity Ratio
- Rising from 0.62 to a peak of 1.69 at the end of 2020, reflecting increased leverage, before steadily declining to about 1.08, showing an improvement in the balance between debt and equity.
Debt to Capital
Hess Corp., debt to capital calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||||
| Long-term finance lease obligations | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Total Hess Corporation stockholders’ equity | ||||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals clear trends in the company's debt structure and capital composition over the examined periods.
- Total Debt
- Total debt remained relatively stable from early 2018 through the end of 2019, fluctuating in the range of approximately $6.4 billion to $7.4 billion. Starting in early 2020, there was a noticeable increase, peaking around $8.5 billion during 2020 and 2021. In 2022 and 2023, total debt showed minor fluctuations but generally stabilized slightly below $8.7 billion.
- Total Capital
- Total capital displayed a gradual decline from around $17.1 billion at the start of 2018 to about $13.9 billion at the close of 2020. From 2021 onwards, total capital progressively increased again, reaching approximately $17.3 billion by the third quarter of 2023. This recovery indicates strengthening capital levels after a dip during the 2018-2020 period.
- Debt to Capital Ratio
- The debt to capital ratio rose steadily from 0.38 in the first quarter of 2018 to a peak of 0.61 between late 2020 and 2021. This upward trend corresponds with the simultaneous increase in total debt and decline in total capital during this period. Subsequently, the ratio began to decline gradually in 2022 and 2023, falling to near 0.50 by the third quarter of 2023, signaling an improvement in capital structure stability and reduced leverage relative to capital.
Overall, the data illustrates a phase of increased leverage and capital reduction culminating around 2020-2021, followed by a period of recovery and capitalization improvement through 2022 and 2023. The gradual debt-to-capital ratio decline in recent quarters suggests a trend towards strengthening the balance sheet and potential efforts to manage financial risk.
Debt to Capital (including Operating Lease Liability)
Hess Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||||
| Long-term finance lease obligations | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Current portion of operating and finance lease obligations | ||||||||||||||||||||||||||||||
| Long-term operating lease obligations | ||||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||||
| Total Hess Corporation stockholders’ equity | ||||||||||||||||||||||||||||||
| Total capital (including operating lease liability) | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends related to the company's debt, capital structure, and leverage ratios over the observed periods.
- Total Debt (including operating lease liability)
- The total debt exhibited a general upward trend from March 2018 through December 2021, increasing from approximately $6.57 billion to around $9.14 billion. This reflects a substantial increase in indebtedness over nearly four years. However, from early 2022 onward, the debt level stabilized, fluctuating modestly around the $9.1 billion mark, reaching $9.3 billion by September 2023. This suggests that while debt expanded significantly in the earlier years, it plateaued in the more recent periods.
- Total Capital (including operating lease liability)
- Total capital showed a decline from early 2018 through late 2020, dropping from about $17.2 billion to $14.4 billion. Beginning in 2021, this figure reversed course and demonstrated a steady increase, rising to approximately $17.9 billion by the third quarter of 2023. The initial decline indicates a contraction in overall capital, whereas the subsequent growth suggests capital rebuilding or asset base expansion in recent years.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio increased significantly from 0.38 in March 2018, peaking at 0.63 by December 2020. This rise reflects increasing leverage, with a larger proportion of the company's capital structure financed by debt during this period. Following this peak, the ratio gradually decreased to 0.52 by September 2023, indicating a modest reduction in leverage and a shift toward a more balanced capital structure.
Overall, the data portray a company that increased its reliance on debt through 2020 in the context of declining total capital, likely reflecting increased borrowing or reduced equity and asset base. From 2021 forward, efforts appear evident to manage leverage more conservatively, with capital growing and the debt-to-capital ratio declining, suggesting improvement in financial stability or strategic capital management.
Debt to Assets
Hess Corp., debt to assets calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||||
| Long-term finance lease obligations | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the reported quarterly periods. Total debt exhibits a general upward trajectory from March 2018 through September 2023, increasing from approximately 6,568 million USD to 8,711 million USD. Despite some fluctuations, particularly in the later quarters, the overall pattern reflects a gradual rise in debt levels.
Total assets show more variability with a less consistent pattern. Starting at around 22,072 million USD in March 2018, total assets initially decrease through 2020, reaching a low near 18,821 million USD by December 2020. Following this period, total assets trend upward, recovering to approximately 23,201 million USD by September 2023. This rebound suggests a possible period of asset growth or asset base strengthening starting in late 2020.
The debt to assets ratio, which measures leverage, increased significantly from around 0.30 in early 2018 to a peak near 0.45 in late 2020 and the first quarter of 2021. This rise corresponds with the simultaneous increase in debt and a decline in asset base. After peaking, this ratio gradually declines, returning to approximately 0.38 by the third quarter of 2023. This decline indicates an improvement in the company’s leverage position, likely influenced by asset growth and stabilization of debt levels.
- Total Debt
- Consistently increased over the period, rising approximately 32.5% from early 2018 to late 2023.
- Total Assets
- Displayed volatility with a downward phase until late 2020 followed by a recovery and steady growth, ultimately exceeding the initial levels as of late 2023.
- Debt to Assets Ratio
- Initially stable around 0.3, rose sharply amid declining assets and increasing debt up to 0.45, then gradually improved to 0.38, indicating reduced leverage risk in recent periods.
Overall, the data suggest a period of increased financial leverage culminating around late 2020, followed by a phase of deleveraging and asset recovery. The recent trend points to enhanced asset strength relative to debt, likely contributing positively to the company’s financial stability.
Debt to Assets (including Operating Lease Liability)
Hess Corp., debt to assets (including operating lease liability) 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 portion of long-term debt | ||||||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||||||
| Long-term finance lease obligations | ||||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||||
| Current portion of operating and finance lease obligations | ||||||||||||||||||||||||||||||
| Long-term operating lease obligations | ||||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt figures exhibit an overall upward trend from March 2018 to September 2023. Beginning at 6,568 million USD in March 2018, debt levels increased gradually, with some fluctuations observed around 2019. Post-2019, debt rose more sharply, peaking near 9,930 million USD by the third quarter of 2023. Despite minor quarterly variations, the general trajectory is an increase in total debt obligations over the analyzed period.
- Total Assets
- Total assets displayed slight fluctuations but showed a relatively stable to mildly increasing trend across the timeframe. Starting at 22,072 million USD in March 2018, asset values dipped to as low as approximately 18,821 million USD in December 2020, reflecting a contraction in the asset base during that period. Subsequently, total assets recovered and increased steadily, reaching 23,201 million USD in September 2023. This suggests gradual growth in the asset base following a period of decline in 2019-2020.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio reveals a clear pattern of gradual increase through the majority of the period, indicating rising leverage. Initially around 0.30 to 0.31 from early 2018 through late 2018, the ratio increased notably during 2019 to roughly 0.35 to 0.36. It peaked around 0.48 in late 2020 and early 2021, reflecting elevated leverage during that period. From mid-2021 onward, the ratio shows a gradual reduction, declining to approximately 0.40 by the third quarter of 2023. This decrease suggests some deleveraging or relative improvement in asset levels compared to debt in recent quarters.
- Summary Insights
- The data indicate a substantial increase in total debt over the analyzed years, while total assets experienced a contraction around 2020 followed by recovery and moderate growth. The resulting leverage, measured by debt to assets ratio, rose significantly through 2020 but has since been trending downward, implying improvements in balance sheet structure or asset growth outpacing debt increases in recent periods. These patterns could reflect responses to changing market conditions or strategic financial management aimed at optimizing capital structure.
Financial Leverage
Hess Corp., financial leverage 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) | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Total Hess Corporation stockholders’ equity | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Financial leverage = Total assets ÷ Total Hess Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- Over the period from March 2018 to September 2023, total assets exhibited a fluctuating trend with an initial slight decline followed by a period of relative stability, and then a moderate recovery in the later years. Total assets peaked at 22,072 million USD in March 2018, decreased gradually through 2020 to a low point around 18,821 million USD in December 2020, indicating asset reduction or divestitures during that time. From 2021 onwards, total assets generally increased, reaching 23,201 million USD by September 2023, signaling an expansion or asset accumulation in recent periods.
- Total Hess Corporation stockholders’ equity
- Stockholders' equity showed a declining trend initially, dropping from 10,605 million USD in March 2018 to a trough of 5,366 million USD by December 2020. This decline indicates equity erosion over that period, possibly due to losses, dividends, or share buybacks. Post-2020, equity figures started to recover gradually, reaching 8,631 million USD by September 2023. Despite the improvement, equity remained below the levels recorded in early 2018, reflecting partial recovery but not full restoration to earlier equity levels.
- Financial leverage
- The financial leverage ratio experienced a clear upward trend from 2.08 in March 2018 to a peak of 3.51 in December 2020, reflecting an increase in debt or liabilities relative to equity. This rising leverage suggests greater reliance on borrowed funds or higher financial risk during this period. After the peak, leverage began to decline steadily, reaching 2.69 by September 2023, which indicates a deleveraging phase with reduced financial risk or improved equity base relative to total assets.
Interest Coverage
Hess Corp., interest coverage 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) | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to Hess Corporation | ||||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2023 Calculation
Interest coverage
= (EBITQ3 2023
+ EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022)
÷ (Interest expenseQ3 2023
+ Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several significant trends in the company's earnings before interest and tax (EBIT), interest expense, and interest coverage ratio over the analyzed quarters.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures display considerable volatility throughout the examined period. From March 2018 through December 2019, EBIT generally fluctuates with notable peaks and troughs, reaching a high of 267 million US$ in March 2019 and dipping sharply to 31 million US$ in December 2019. The trend dramatically reverses entering 2020, with EBIT plummeting to a substantial negative value of -2,332 million US$ in March 2020, marking a severe downturn likely linked to extraordinary circumstances during that period. Subsequent quarters in 2020 show a gradual recovery, turning positive by December 2020 at 163 million US$. The years 2021 through 2023 depict a steady upward trajectory in EBIT, peaking at 1,203 million US$ in June 2022 before experiencing some declines but generally maintaining high levels relative to earlier years, with 934 million US$ recorded in September 2023.
- Interest Expense
- The interest expense remains relatively stable throughout the entire period, fluctuating narrowly between 90 and 125 million US$. There is no significant upward or downward trend, suggesting consistent debt servicing costs across the quarters. This stability contrasts sharply with the volatility observed in EBIT, implying that changes in interest expense were not a primary driver of EBIT fluctuations.
- Interest Coverage Ratio
- The interest coverage ratio reflects the company’s ability to cover interest expenses with earnings before interest and taxes. It shows a general positive trend but with important interruptions. Initial ratios around 1.55 to 2.32 in early 2019 indicate moderate coverage. The ratio deteriorates dramatically during 2020, reflecting the negative EBIT in that year, with values dropping into negative territory (lowest approximately -5.79), indicating insufficient earnings to cover interest costs. Beginning in 2021, there is a marked recovery; the ratio improves steadily, reaching a high of 8.19 in September 2022. By September 2023, the ratio slightly decreases but remains strong at 6.47, signaling robust earnings relative to interest expense over recent quarters.
In summary, the data exhibits a period of severe operational stress in early 2020 with negative EBIT and poor interest coverage, followed by a substantial rebound and sustained improvement in profitability and coverage capacity through 2021 to 2023. Interest expense remains stable, underscoring that the primary factors affecting financial performance pertain to operating earnings rather than financing costs.