Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Hess Corp., long-term (investment) activity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a declining trend from 0.39 in 2018 to 0.33 in 2020, indicating reduced efficiency in utilizing fixed assets to generate revenue during this period. However, a notable recovery occurs in the subsequent years, rising to 0.52 in 2021 and further increasing to 0.74 in 2022, which reflects an improvement in asset utilization.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted ratio follows a similar pattern to the net fixed asset turnover, starting at 0.39 in 2018 and dropping steadily to 0.32 in 2020. It then displays a marked rebound to 0.51 in 2021 and 0.72 in 2022. The close alignment of this ratio with the standard net fixed asset turnover indicates that operating lease assets have a proportional impact on asset efficiency.
- Total Asset Turnover
- Total asset turnover remains stable at 0.3 during 2018 and 2019 but declines to 0.25 in 2020, suggesting a decrease in overall asset productivity amid that year. Following this dip, the ratio improves significantly to 0.36 in 2021 and 0.52 in 2022, signifying enhanced capacity to generate sales from total assets.
- Equity Turnover
- Equity turnover exhibits a consistent increasing trend over the five-year period. Beginning at 0.66 in 2018, the ratio ascends annually, reaching 0.74 in 2019, 0.87 in 2020, then demonstrating a sharp increase to 1.19 in 2021 and 1.44 in 2022. This pattern suggests enhanced efficiency in generating sales relative to shareholders' equity, reflecting improved use of equity capital over time.
Net Fixed Asset Turnover
Hess Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover = Sales and other operating revenues ÷ Property, plant and equipment, net, including finance lease right-of-use assets
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- There is a fluctuation in sales and other operating revenues over the five-year period. The revenues started at 6,323 million USD in 2018, showed a slight increase to 6,495 million USD in 2019, and then experienced a significant decline to 4,667 million USD in 2020. This drop may suggest a period of reduced demand or operational challenges. However, there was a strong recovery in the subsequent years, with revenues increasing to 7,473 million USD in 2021 and reaching the highest level of 11,324 million USD in 2022, indicating a robust growth phase and potentially successful strategic initiatives or favorable market conditions.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, including finance lease right-of-use assets, shows a declining trend initially, from 16,083 million USD in 2018 to 14,283 million USD in 2020. This decrease may reflect asset disposals, impairments, or lower investment during these years. In 2021 and 2022, the value stabilizes and slightly recovers to 15,224 million USD by the end of 2022, which could suggest renewed capital expenditure or asset revaluation activities.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency of fixed asset utilization to generate sales, initially remains relatively stable between 2018 and 2019 at around 0.39 and 0.38. It then declines in 2020 to 0.33, mirroring the drop in sales and other operating revenues during the same period. From 2020 onwards, there is a noticeable improvement, with the ratio increasing to 0.52 in 2021 and further to 0.74 in 2022. This trend indicates enhanced operational efficiency and better utilization of fixed assets in generating revenues during the latter part of the period observed.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Hess Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets | ||||||
| Operating lease right-of-use assets, net | ||||||
| Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales and other operating revenues ÷ Property, plant and equipment, net, including finance lease right-of-use assets (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates several significant trends over the five-year period from 2018 to 2022.
- Sales and Other Operating Revenues
- There is a noticeable fluctuation in sales and other operating revenues. Starting at 6,323 million US dollars in 2018, revenues increased slightly to 6,495 million in 2019, followed by a substantial decline to 4,667 million in 2020. This drop could be attributed to external market factors impacting the business environment during that year. Subsequently, there was a strong recovery with revenues rising to 7,473 million in 2021 and achieving a significant increase to 11,324 million in 2022, representing the highest value in the reported period.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment, including leased assets, showed a decreasing trend overall. From 16,083 million in 2018, the value increased slightly to 17,560 million in 2019 but then declined markedly to 14,709 million in 2020. The values remained relatively stable in 2021 at 14,678 million before rising to 15,794 million in 2022. The decline from 2019 to 2021 suggests asset disposals, impairments, or reduced capital expenditures during that period, while the increase in 2022 indicates reinvestment or asset additions.
- Net Fixed Asset Turnover
- This ratio reflects operational efficiency in utilizing fixed assets to generate revenue. The ratio declined from 0.39 in 2018 to 0.37 in 2019, followed by a drop to 0.32 in 2020, aligning with the declines in sales and asset base seen in that year. However, the ratio improved significantly to 0.51 in 2021 and further to 0.72 in 2022, indicating enhanced effectiveness in using fixed assets to produce sales. The rise in turnover correlates with the strong recovery in revenues and stable asset levels during the last two years.
Total Asset Turnover
Hess Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Total Asset Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Total asset turnover = Sales and other operating revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- The sales and other operating revenues exhibit a fluctuating but overall upward trend over the assessed periods. Starting at 6,323 million USD in 2018, there was a slight increase to 6,495 million USD in 2019, followed by a significant decrease to 4,667 million USD in 2020. Subsequently, the revenue rebounded sharply to 7,473 million USD in 2021 and further increased substantially to 11,324 million USD in 2022, indicating a strong recovery and growth phase in the most recent period.
- Total Assets
- Total assets showed relative stability with minor fluctuations over the period. Beginning at 21,433 million USD in 2018, total assets slightly increased to 21,782 million USD in 2019 before declining to 18,821 million USD in 2020. There was a recovery in 2021 to 20,515 million USD and a further increase to 21,695 million USD in 2022, nearly reaching the earlier peak levels. This suggests maintained asset base size with some adjustments possibly due to economic conditions or investment strategies.
- Total Asset Turnover
- Total asset turnover ratio indicates the efficiency of asset utilization in generating revenue. The ratio was consistent at 0.3 in both 2018 and 2019, dropped to 0.25 in 2020 reflecting reduced revenue generation relative to assets, likely due to the lowered sales in that year. The ratio improved significantly to 0.36 in 2021 and surged to 0.52 in 2022, pointing to enhanced operational efficiency and better use of assets to generate revenues in more recent periods.
Equity Turnover
Hess Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales and other operating revenues | ||||||
| Total Hess Corporation stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Equity Turnover, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Equity turnover = Sales and other operating revenues ÷ Total Hess Corporation stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales and Other Operating Revenues
- Sales and other operating revenues demonstrated significant fluctuations during the period observed. Starting at 6,323 million US dollars in 2018, there was a slight increase in 2019 to 6,495 million US dollars, followed by a notable decline to 4,667 million US dollars in 2020. However, this trend reversed in the subsequent years with revenues rising sharply to 7,473 million US dollars in 2021 and further increasing to 11,324 million US dollars by the end of 2022, indicating a strong recovery and substantial growth in business operations.
- Total Stockholders’ Equity
- Stockholders’ equity exhibited a downward trend initially, decreasing from 9,629 million US dollars at the end of 2018 to 8,732 million US dollars in 2019, and declining more steeply to 5,366 million US dollars in 2020. A modest recovery occurred in 2021, with equity reaching 6,300 million US dollars, followed by a further increase in 2022 up to 7,855 million US dollars. Despite this positive movement, equity at the end of the period remains below the initial 2018 level.
- Equity Turnover Ratio
- The equity turnover ratio, which measures how efficiently equity is utilized to generate revenues, showed a continuous upward trend throughout the observed years. It rose from 0.66 in 2018 to 0.74 in 2019, then increased more noticeably to 0.87 in 2020. A significant improvement was seen in 2021, with the ratio escalating to 1.19 and further increasing to 1.44 in 2022. This consistent rise suggests enhanced efficiency in using equity assets to produce sales.