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: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) 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).
The analysis of the financial leverage and debt-related ratios over the observed quarters reveals cyclical patterns influenced by economic and operational factors.
- Debt to Equity Ratios
- The debt to equity ratio shows a gradual increase from early 2019 until the end of 2020, peaking around 1.59. This indicates a rising proportion of debt relative to shareholders' equity during this period. However, from 2021 onwards, a steady decline is observed, reaching approximately 1.01 by the third quarter of 2023, suggesting a reduction in leverage and potentially improving equity financing.
- The wider measure including operating lease liability follows a similar trajectory but with consistently higher values, underscoring the impact of lease obligations on overall debt levels. This ratio also peaks in late 2020 before declining steadily thereafter.
- Debt to Capital Ratios
- Debt to capital ratios mirror the movements seen in debt to equity, increasing sharply between 2019 and 2020, reaching values above 0.6, indicating that a higher proportion of capital structure was financed by debt during this time. Afterwards, these ratios demonstrate a declining trend through 2023, falling to just around 0.5, which suggests decreased reliance on debt in the company's capital structure.
- Inclusion of operating lease liabilities consistently elevates the ratio by a margin, but the general pattern remains the same.
- Debt to Assets Ratios
- The debt to assets ratio increased moderately from approximately 0.31 in early 2019 to about 0.45 by late 2020, indicating a rising use of debt relative to total assets. From 2021 onward, the ratio generally declines to around 0.38 by late 2023, reflecting improved asset financing or debt reduction strategies.
- This ratio including operating lease liability registers slightly higher figures throughout but follows the same pattern of increase and subsequent gradual decrease.
- Financial Leverage
- Financial leverage exhibits a significant rise from 2.32 at the beginning of 2019 to a peak near 3.51 in late 2020, aligning with increased debt usage in prior ratios. A progressive decrease thereafter is evident, settling around 2.69 through 2023, indicating a conservative shift in leveraging strategy and a strengthening of equity base relative to assets.
- Interest Coverage Ratio
- This ratio fluctuates markedly over the periods. Early values near 2 suggest reasonable ability to cover interest expenses. However, there is a sharp deterioration in 2020 with negative ratios reflecting an inability to cover interest obligations, possibly due to operational challenges or lower earnings linked to the period’s economic conditions.
- From 2021, interest coverage shows a notable recovery, climbing steadily to peak values above 8, indicating improved earnings relative to interest expense and enhanced financial health. A slight moderation occurs in recent quarters but coverage remains strong in the range of 6 to 7.
Overall, the data shows the company experienced heightened leverage and debt reliance up to the end of 2020, accompanied by weakened interest coverage, likely due to external pressures. Since then, there has been a clear strategic effort to reduce debt burden and improve earnings capacity to meet interest expenses, reflected in improved leverage ratios and markedly better interest coverage ratios through to late 2023.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||
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).
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 notable trends concerning the company's capital structure over the examined periods. The analysis focuses on total debt, stockholders' equity, and the resulting debt to equity ratio from the first quarter of 2019 through the third quarter of 2023.
- Total Debt
-
Total debt showed a moderate increase from approximately $6.8 billion in early 2019 to just over $8.7 billion by late 2023. The debt levels remained relatively stable from mid-2019 through the end of 2020, fluctuating around the $8.5 billion mark. In 2021, debt slightly increased, peaking near $8.7 billion in the third quarter, then exhibited a minor decline into early 2022. From mid-2022 onward, total debt again rose gradually, culminating near $8.7 billion by the third quarter of 2023.
- Total Stockholders’ Equity
-
Stockholders’ equity experienced a significant decline beginning in early 2019, dropping from approximately $9.3 billion to around $5.4 billion by the end of 2020. This represents a substantial reduction in equity over this period. However, from the start of 2021, equity showed increasing momentum, recovering steadily through to the third quarter of 2023, reaching around $8.6 billion. This recovery trend suggests improvement in net asset value after the considerable decline observed through 2020.
- Debt to Equity Ratio
-
The debt to equity ratio follows a distinct pattern closely linked to the changes in debt and equity levels. Initially, in early 2019, the ratio was below 1, indicating a stronger equity base relative to debt. However, this ratio rose sharply through 2020, peaking at approximately 1.59 by year-end, reflecting increased leverage driven mainly by the significant equity decline and relatively stable or rising debt. Starting in 2021, the ratio showed a consistent downward trend, decreasing gradually to approximately 1.01 by the third quarter of 2023. This decline signals a reduction in leverage relative to equity, likely due to the ongoing equity recovery combined with relatively stable debt levels.
Overall, the financial data indicates that the company underwent a period of increased leverage and equity contraction through 2020, followed by a recovery phase characterized by equity growth and a reduction in the debt to equity ratio during 2021 to 2023. While total debt remained relatively elevated throughout the timeframe, the improving equity position has contributed to a more balanced capital structure in recent periods.
Debt to Equity (including Operating Lease Liability)
Hess Corp., debt to equity (including operating lease liability) calculation (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).
1 Q3 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Hess Corporation stockholders’ equity
= ÷ =
The financial data indicates a notable evolution in the company's leverage and equity position over the analyzed periods.
- Total Debt (including operating lease liability)
- The total debt exhibits a gradual upward trend from March 2019 through September 2023. Starting at approximately 7.65 billion USD in early 2019, the debt level experiences periodic increases with some stability around 9.1 billion USD during 2020 and 2021. From 2022 onwards, the debt remains relatively stable with a slight upward tendency, reaching around 9.3 billion USD by the third quarter of 2023. This indicates a consistent use of debt financing over the period with minor fluctuations but no significant deleveraging.
- Total Stockholders’ Equity
- Equity levels display a distinct downward trajectory from early 2019 into the end of 2020, falling from about 9.3 billion USD to near 5.4 billion USD. This decline reflects a reduction in shareholders’ equity, possibly due to losses, dividends, or other equity-reducing activities. Beginning in 2021, however, equity values begin to recover, increasing steadily through 2022 and into 2023, reaching approximately 8.6 billion USD by the third quarter of 2023. This rebound suggests improved financial performance or capital management during this later period.
- Debt to Equity Ratio
- The debt to equity ratio rises significantly from 0.82 in March 2019 to a peak of 1.69 in December 2020, indicating an increasing reliance on debt relative to equity during this time. This peak corresponds with the period when equity was declining and debt marginally increasing. After December 2020, the ratio begins a steady decline, reaching around 1.08 by September 2023, reflecting a strengthening equity base relative to debt. This reduction implies improved financial stability and a slower rate of leverage growth in recent years.
Overall, the data reveals a period of rising leverage and shrinking equity through 2020, followed by a phase of equity recovery and moderate stabilization of debt levels, leading to healthier leverage metrics by mid-2023. The financial structure shifts from higher financial risk towards greater balance and potential resilience.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||
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).
1 Q3 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a generally increasing trend over the analyzed periods. Starting at $6.812 billion at the end of Q1 2019, the debt gradually rises with some periods of relative stability. The most notable increase occurs between Q1 2019 and Q2 2020, with debt increasing from around $6.8 billion to approximately $8.5 billion. From Q3 2020 onwards, the total debt mostly stabilizes, remaining in the range of roughly $8.4 billion to $8.7 billion. Towards the latest quarters, there is a slight upward movement, with total debt peaking near $8.7 billion by Q3 2023.
- Total Capital
- Total capital shows more variability compared to total debt. It starts at $16.154 billion in Q1 2019 and exhibits a declining trend until Q4 2020, reaching a low point of approximately $13.882 billion. Subsequent quarters reveal a recovery phase, with total capital increasing steadily from early 2021 onward. The upward trend continues through 2022 and into 2023, where total capital reaches a peak of about $17.342 billion by Q3 2023, exceeding the initial levels seen in 2019.
- Debt to Capital Ratio
- The debt to capital ratio demonstrates notable fluctuations aligned with the trends observed in total debt and total capital. Initially near 0.42 in early 2019, the ratio rises steadily through 2019 and 2020, peaking around 0.61 in late 2020 and throughout much of 2021. This increase indicates that debt was growing faster than capital or capital was shrinking during that period. However, from late 2021 onwards, the ratio begins a gradual decline, reaching approximately 0.50 by Q3 2023. This downward movement suggests an improving balance between debt and overall capital, attributable to the increase in total capital exceeding the growth rate of total debt during this later period.
- Summary Insights
- Overall, the financial data reveals an initial phase characterized by rising leverage, with both debt increasing and total capital decreasing leading to a higher debt to capital ratio. This period corresponds approximately to 2019 through 2021. Following this, a recovery and strengthening phase is observed, with total capital increasing substantially while total debt remains relatively stable, resulting in a reduced debt to capital ratio. The most recent data suggests an improving financial structure with moderated leverage and increased capital base.
Debt to Capital (including Operating Lease Liability)
Hess Corp., debt to capital (including operating lease liability) calculation (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).
1 Q3 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
The financial data reveals notable trends in the company's debt structure and overall capital composition over multiple quarters. A detailed examination highlights changes in the levels of total debt, total capital, and the debt-to-capital ratio during the examined periods.
- Total Debt (Including Operating Lease Liability)
-
Total debt exhibited a general upward trajectory from early 2019 through the end of 2023. Starting at approximately 7,650 million USD in March 2019, the total debt gradually increased with some fluctuations, reaching about 9,303 million USD by the third quarter of 2023. Notably, there was a significant rise between late 2019 and early 2020, where debt increased from around 7,932 million USD to approximately 8,930 million USD. Following this, debt levels mostly stabilized with moderate increases quarter over quarter, reflecting a conservative debt accumulation approach in recent periods.
- Total Capital (Including Operating Lease Liability)
-
Total capital showed a different pattern characterized by an initial decline followed by a recovery and subsequent growth. The capital decreased from about 16,992 million USD in March 2019 to a low near 14,441 million USD by the end of 2020, suggesting potential capital depletion or asset adjustments during this period. However, from 2021 onward, total capital recovered significantly, climbing from roughly 14,637 million USD in the first quarter of 2021 to 17,934 million USD in the third quarter of 2023. This rebound indicates strengthened capital base, possibly driven by asset appreciation, equity infusions, or retained earnings.
- Debt to Capital Ratio (Including Operating Lease Liability)
-
The debt-to-capital ratio reflects the proportion of debt financing relative to total capital and shows a clear trend of increase followed by gradual decline. Starting at 0.45 in March 2019, the ratio rose steadily to peak at 0.63 by the end of 2020, indicating increased reliance on debt to finance the company’s capital structure during this period. Post-2020, the ratio began to decrease gradually, declining to approximately 0.52 by the third quarter of 2023. This decline in leverage suggests a strategic effort to rebalance the capital structure, reducing dependency on debt and possibly improving financial stability and creditworthiness.
In summary, the company increased its total debt levels moderately over the entire time span, while total capital experienced an initial decrease followed by a recovery and growth phase. The leverage ratio peaked around late 2020, reflecting heightened debt utilization, and later declined as capital strengthened and debt growth slowed. These dynamics imply an adaptive capital management strategy responding to varying financial conditions and priorities over time.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||
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).
1 Q3 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates that total debt and total assets have exhibited notable fluctuations over the quarters analyzed. Total debt initially increased from the first quarter of 2019 through late 2020, reaching a peak around the fourth quarter of 2020. Following this peak, debt levels remained relatively stable with minor fluctuations, maintaining a range slightly below and above 8,400 million US dollars through 2023.
Total assets showed a declining trend from early 2019 until late 2020, decreasing from approximately 21,700 million US dollars to below 19,000 million by the end of 2020. However, from 2021 onwards, total assets demonstrated an upward trend, recovering steadily and surpassing previous levels to reach over 23,000 million US dollars by the third quarter of 2023.
The debt to assets ratio closely mirrors these trends, reflecting an increase from around 0.31 in early 2019 to 0.45 by the end of 2020. This indicates that debt grew proportionally faster than assets during this period, suggesting higher financial leverage or increased reliance on debt financing. Following this peak, the ratio gradually decreased from 0.45 to approximately 0.38 by the third quarter of 2023. This decline correlates with the recovery and growth in total assets while debt levels remained relatively stable.
- Total Debt
- Steady growth from early 2019 to late 2020, followed by stabilization with minor fluctuations through 2023.
- Total Assets
- Declining trend from early 2019 to late 2020, then a recovery phase from 2021, culminating in record highs by mid-2023.
- Debt to Assets Ratio
- Increase from 0.31 to 0.45 during 2019-2020, signifying increased leverage, then a steady decrease to 0.38 by 2023, indicating improved balance sheet strength and asset growth relative to debt.
Overall, the data reflects a period of financial stress or strategic borrowing up to the end of 2020, possibly to support operations or investments amid asset decline, followed by recovery and asset growth that contributed to reducing financial leverage over the subsequent years.
Debt to Assets (including Operating Lease Liability)
Hess Corp., debt to assets (including operating lease liability) calculation (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).
1 Q3 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
The financial data reflects several key trends relating to the company’s leverage and asset base over the examined periods.
- Total debt (including operating lease liability)
- The total debt level shows a general upward trajectory from March 2019 to September 2023. Beginning at approximately 7.65 billion USD in early 2019, debt increased steadily, reaching around 9.3 billion USD by the most recent quarter. Notably, there was a significant rise between the end of 2019 and March 2020, coinciding with a broader increase through 2020, after which debt remained relatively stable at elevated levels with minor fluctuations.
- Total assets
- Total assets exhibit a more volatile trend. Initially around 21.7 billion USD in early 2019, assets declined through 2020, hitting a trough near 18.8 billion USD by the end of that year. From 2021 onward, there is a clear recovery and growth pattern, with assets increasing continuously to reach approximately 23.2 billion USD by the third quarter of 2023, surpassing the pre-2020 levels.
- Debt to assets ratio (including operating lease liability)
- The debt to assets ratio indicates changes in the company's financial leverage relative to its asset base. Starting at a moderate level of approximately 0.35 in early 2019, the ratio increases sharply through 2020, peaking near 0.48 by the end of that year. Subsequently, the ratio trends downward gradually, reflecting an improvement in capital structure or asset growth outpacing debt accumulation. By September 2023, the ratio moderates to about 0.40, indicating a reduction in financial leverage compared to the peak levels recorded during 2020.
Overall, the company experienced increased leverage and decreased asset base around 2020, likely influenced by external factors affecting asset valuations or operational conditions. The subsequent periods show a recovery in asset values and a modest reduction in leverage, suggesting improved financial stability and asset growth in recent quarters.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | |||||||||||||||||||||||||
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).
1 Q3 2023 Calculation
Financial leverage = Total assets ÷ Total Hess Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company’s total assets, stockholders’ equity, and financial leverage over the observed periods.
- Total Assets
- Total assets exhibited slight fluctuations but generally maintained a stable trend from the beginning of the first quarter of 2019 through the end of 2023. Initial values near 21,700 million US dollars saw a gradual decline reaching a low around mid-2020 with approximately 18,800 million US dollars. Following this trough, total assets experienced a recovery trend with a steady increase, surpassing pre-decline levels by the end of 2023, reaching over 23,000 million US dollars. This indicates the company’s ability to rebuild its asset base after mid-2020 lows.
- Stockholders’ Equity
- Stockholders’ equity showed a distinct downward trend starting in early 2019, with values near 9,300 million US dollars, declining sharply through 2020 to a low of approximately 5,400 million by the end of 2020. Subsequent quarters marked a recovery phase, with equity gradually increasing and exceeding 8,600 million US dollars by late 2023. The recovery suggests improvements in retained earnings and/or capital structure adjustments following the significant reduction in the earlier periods.
- Financial Leverage
- Financial leverage ratios started at around 2.3 in early 2019 and increased considerably during the mid-2019 to end-2020 period, peaking at above 3.5. This rising leverage corresponded to the decline in equity and total assets, indicating an increased reliance on debt financing or obligations relative to equity. From 2021 onward, the leverage ratio has shown a gradual decline to about 2.7 by the third quarter of 2023, aligning with the recovery trends in equity and total assets. This decrease in leverage suggests a strengthening of the balance sheet and a possible reduction in financial risk.
Overall, the data reflect a period of financial stress around 2020, followed by a corrective phase with improving equity levels and a reduction in leverage, supported by a rebound in total asset base. The trends indicate a resilient financial position moving towards greater stability and lower risk by the end of the analyzed time frame.
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 | |||||||
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| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||
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| Interest coverage1 | |||||||||||||||||||||||||
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| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
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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).
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 quarterly financial data reveals distinct trends in earnings before interest and tax (EBIT), interest expense, and interest coverage ratios over the analyzed periods.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values show significant volatility throughout the timeline. Initially, EBIT was positive and relatively stable during early 2019, with values around the mid-200 million US dollars. However, a sharp decline occurred in the first half of 2020, with EBIT turning deeply negative, reaching a low of -2332 million US dollars in the first quarter of 2020. This reflects substantial operational or market challenges during this period. From the third quarter of 2020 onwards, EBIT demonstrated a recovery trend, moving back into positive territory and experiencing consistent growth. By 2022 and 2023, EBIT values ranged from 700 to over 1200 million US dollars, indicating a strong rebound and improved profitability relative to the downturn observed in early 2020.
- Interest Expense
- Interest expense remained relatively stable across all quarters, fluctuating narrowly between 90 and 125 million US dollars. This suggests that interest-bearing debt levels or interest rates did not experience significant changes, maintaining consistent financing costs over the entire period.
- Interest Coverage Ratio
- The interest coverage ratio exhibits a pattern closely linked to EBIT fluctuations. Early 2019 ratios indicate adequate coverage, generally above 1.5, signaling operational earnings were sufficient to cover interest expenses comfortably. A marked deterioration occurs in the first three quarters of 2020 when the ratio dives to negative values, as EBIT was significantly negative, indicating a period where operating income was insufficient to cover interest obligations. From late 2020 onwards, as EBIT recovered, interest coverage ratios improved substantially, reaching peak values above 8 in 2022 and early 2023. This indicates a strong ability to meet interest payments from operating profits in the latter periods.