Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Hess Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Hess Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Hess Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Hess Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Hess Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Hess Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Hess Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Hess Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Hess Corp. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Hess Corp. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Hess Corp., debt to equity 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) | ||||||
| Current portion of long-term debt | 3) | 517) | 10) | —) | 67) | |
| Current portion of finance lease obligations | 21) | 19) | 18) | 17) | —) | |
| Long-term debt, excluding current portion | 8,278) | 7,941) | 8,286) | 7,142) | 6,605) | |
| Long-term finance lease obligations | 179) | 200) | 220) | 238) | —) | |
| Total debt | 8,481) | 8,677) | 8,534) | 7,397) | 6,672) | |
| Total Hess Corporation stockholders’ equity | 7,855) | 6,300) | 5,366) | 8,732) | 9,629) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.08 | 1.38 | 1.59 | 0.85 | 0.69 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.15 | 0.23 | 0.34 | 0.19 | — | |
| ConocoPhillips | 0.35 | 0.44 | 0.51 | 0.43 | — | |
| Exxon Mobil Corp. | 0.21 | 0.28 | 0.43 | 0.24 | — | |
| Marathon Petroleum Corp. | 0.96 | 0.97 | 1.42 | 0.86 | — | |
| Occidental Petroleum Corp. | 0.66 | 1.46 | 1.95 | 1.13 | — | |
| Valero Energy Corp. | 0.49 | 0.75 | 0.78 | 0.44 | — | |
| Debt to Equity, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.29 | 0.40 | 0.55 | 0.36 | — | |
| Debt to Equity, Industry | ||||||
| Energy | 0.30 | 0.42 | 0.58 | 0.37 | — | |
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
Debt to equity = Total debt ÷ Total Hess Corporation stockholders’ equity
= 8,481 ÷ 7,855 = 1.08
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Hess Corp. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Hess Corp., debt to equity (including operating lease liability) 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) | ||||||
| Current portion of long-term debt | 3) | 517) | 10) | —) | 67) | |
| Current portion of finance lease obligations | 21) | 19) | 18) | 17) | —) | |
| Long-term debt, excluding current portion | 8,278) | 7,941) | 8,286) | 7,142) | 6,605) | |
| Long-term finance lease obligations | 179) | 200) | 220) | 238) | —) | |
| Total debt | 8,481) | 8,677) | 8,534) | 7,397) | 6,672) | |
| Current portion of operating lease obligations | 200) | 70) | 63) | 182) | —) | |
| Long-term operating lease obligations | 469) | 394) | 478) | 353) | —) | |
| Total debt (including operating lease liability) | 9,150) | 9,141) | 9,075) | 7,932) | 6,672) | |
| Total Hess Corporation stockholders’ equity | 7,855) | 6,300) | 5,366) | 8,732) | 9,629) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.16 | 1.45 | 1.69 | 0.91 | 0.69 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.17 | 0.25 | 0.37 | 0.21 | — | |
| ConocoPhillips | 0.36 | 0.45 | 0.54 | 0.45 | — | |
| Exxon Mobil Corp. | 0.24 | 0.31 | 0.46 | 0.27 | — | |
| Marathon Petroleum Corp. | 1.01 | 1.03 | 1.49 | 0.93 | — | |
| Occidental Petroleum Corp. | 0.69 | 1.49 | 2.01 | 1.17 | — | |
| Valero Energy Corp. | 0.54 | 0.82 | 0.84 | 0.50 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.32 | 0.43 | 0.59 | 0.39 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Energy | 0.33 | 0.45 | 0.62 | 0.41 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Hess Corporation stockholders’ equity
= 9,150 ÷ 7,855 = 1.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Hess Corp. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Hess Corp., debt to capital 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) | ||||||
| Current portion of long-term debt | 3) | 517) | 10) | —) | 67) | |
| Current portion of finance lease obligations | 21) | 19) | 18) | 17) | —) | |
| Long-term debt, excluding current portion | 8,278) | 7,941) | 8,286) | 7,142) | 6,605) | |
| Long-term finance lease obligations | 179) | 200) | 220) | 238) | —) | |
| Total debt | 8,481) | 8,677) | 8,534) | 7,397) | 6,672) | |
| Total Hess Corporation stockholders’ equity | 7,855) | 6,300) | 5,366) | 8,732) | 9,629) | |
| Total capital | 16,336) | 14,977) | 13,900) | 16,129) | 16,301) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.52 | 0.58 | 0.61 | 0.46 | 0.41 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.13 | 0.18 | 0.25 | 0.16 | — | |
| ConocoPhillips | 0.26 | 0.31 | 0.34 | 0.30 | — | |
| Exxon Mobil Corp. | 0.17 | 0.22 | 0.30 | 0.20 | — | |
| Marathon Petroleum Corp. | 0.49 | 0.49 | 0.59 | 0.46 | — | |
| Occidental Petroleum Corp. | 0.40 | 0.59 | 0.66 | 0.53 | — | |
| Valero Energy Corp. | 0.33 | 0.43 | 0.44 | 0.31 | — | |
| Debt to Capital, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.22 | 0.29 | 0.36 | 0.26 | — | |
| Debt to Capital, Industry | ||||||
| Energy | 0.23 | 0.30 | 0.37 | 0.27 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 8,481 ÷ 16,336 = 0.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Hess Corp. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Hess Corp., debt to capital (including operating lease liability) 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) | ||||||
| Current portion of long-term debt | 3) | 517) | 10) | —) | 67) | |
| Current portion of finance lease obligations | 21) | 19) | 18) | 17) | —) | |
| Long-term debt, excluding current portion | 8,278) | 7,941) | 8,286) | 7,142) | 6,605) | |
| Long-term finance lease obligations | 179) | 200) | 220) | 238) | —) | |
| Total debt | 8,481) | 8,677) | 8,534) | 7,397) | 6,672) | |
| Current portion of operating lease obligations | 200) | 70) | 63) | 182) | —) | |
| Long-term operating lease obligations | 469) | 394) | 478) | 353) | —) | |
| Total debt (including operating lease liability) | 9,150) | 9,141) | 9,075) | 7,932) | 6,672) | |
| Total Hess Corporation stockholders’ equity | 7,855) | 6,300) | 5,366) | 8,732) | 9,629) | |
| Total capital (including operating lease liability) | 17,005) | 15,441) | 14,441) | 16,664) | 16,301) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.54 | 0.59 | 0.63 | 0.48 | 0.41 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.15 | 0.20 | 0.27 | 0.18 | — | |
| ConocoPhillips | 0.26 | 0.31 | 0.35 | 0.31 | — | |
| Exxon Mobil Corp. | 0.19 | 0.24 | 0.32 | 0.22 | — | |
| Marathon Petroleum Corp. | 0.50 | 0.51 | 0.60 | 0.48 | — | |
| Occidental Petroleum Corp. | 0.41 | 0.60 | 0.67 | 0.54 | — | |
| Valero Energy Corp. | 0.35 | 0.45 | 0.46 | 0.33 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.24 | 0.30 | 0.37 | 0.28 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Energy | 0.25 | 0.31 | 0.38 | 0.29 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,150 ÷ 17,005 = 0.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Hess Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Hess Corp., debt to assets 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) | ||||||
| Current portion of long-term debt | 3) | 517) | 10) | —) | 67) | |
| Current portion of finance lease obligations | 21) | 19) | 18) | 17) | —) | |
| Long-term debt, excluding current portion | 8,278) | 7,941) | 8,286) | 7,142) | 6,605) | |
| Long-term finance lease obligations | 179) | 200) | 220) | 238) | —) | |
| Total debt | 8,481) | 8,677) | 8,534) | 7,397) | 6,672) | |
| Total assets | 21,695) | 20,515) | 18,821) | 21,782) | 21,433) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.39 | 0.42 | 0.45 | 0.34 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.09 | 0.13 | 0.18 | 0.11 | — | |
| ConocoPhillips | 0.18 | 0.22 | 0.25 | 0.21 | — | |
| Exxon Mobil Corp. | 0.11 | 0.14 | 0.20 | 0.13 | — | |
| Marathon Petroleum Corp. | 0.30 | 0.30 | 0.37 | 0.29 | — | |
| Occidental Petroleum Corp. | 0.27 | 0.39 | 0.45 | 0.35 | — | |
| Valero Energy Corp. | 0.19 | 0.24 | 0.28 | 0.18 | — | |
| Debt to Assets, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.15 | 0.19 | 0.25 | 0.18 | — | |
| Debt to Assets, Industry | ||||||
| Energy | 0.15 | 0.20 | 0.25 | 0.18 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 8,481 ÷ 21,695 = 0.39
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Hess Corp. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Hess Corp., debt to assets (including operating lease liability) 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) | ||||||
| Current portion of long-term debt | 3) | 517) | 10) | —) | 67) | |
| Current portion of finance lease obligations | 21) | 19) | 18) | 17) | —) | |
| Long-term debt, excluding current portion | 8,278) | 7,941) | 8,286) | 7,142) | 6,605) | |
| Long-term finance lease obligations | 179) | 200) | 220) | 238) | —) | |
| Total debt | 8,481) | 8,677) | 8,534) | 7,397) | 6,672) | |
| Current portion of operating lease obligations | 200) | 70) | 63) | 182) | —) | |
| Long-term operating lease obligations | 469) | 394) | 478) | 353) | —) | |
| Total debt (including operating lease liability) | 9,150) | 9,141) | 9,075) | 7,932) | 6,672) | |
| Total assets | 21,695) | 20,515) | 18,821) | 21,782) | 21,433) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.42 | 0.45 | 0.48 | 0.36 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.11 | 0.15 | 0.20 | 0.13 | — | |
| ConocoPhillips | 0.18 | 0.23 | 0.26 | 0.22 | — | |
| Exxon Mobil Corp. | 0.13 | 0.16 | 0.22 | 0.15 | — | |
| Marathon Petroleum Corp. | 0.31 | 0.32 | 0.39 | 0.32 | — | |
| Occidental Petroleum Corp. | 0.29 | 0.40 | 0.47 | 0.37 | — | |
| Valero Energy Corp. | 0.21 | 0.26 | 0.31 | 0.20 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.16 | 0.20 | 0.26 | 0.19 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Energy | 0.17 | 0.21 | 0.27 | 0.20 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,150 ÷ 21,695 = 0.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Hess Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Hess Corp., financial leverage 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) | ||||||
| Total assets | 21,695) | 20,515) | 18,821) | 21,782) | 21,433) | |
| Total Hess Corporation stockholders’ equity | 7,855) | 6,300) | 5,366) | 8,732) | 9,629) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.76 | 3.26 | 3.51 | 2.49 | 2.23 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.62 | 1.72 | 1.82 | 1.65 | — | |
| ConocoPhillips | 1.95 | 2.00 | 2.10 | 2.02 | — | |
| Exxon Mobil Corp. | 1.89 | 2.01 | 2.12 | 1.89 | — | |
| Marathon Petroleum Corp. | 3.24 | 3.26 | 3.84 | 2.93 | — | |
| Occidental Petroleum Corp. | 2.41 | 3.69 | 4.31 | 3.19 | — | |
| Valero Energy Corp. | 2.59 | 3.14 | 2.75 | 2.47 | — | |
| Financial Leverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.95 | 2.12 | 2.25 | 2.02 | — | |
| Financial Leverage, Industry | ||||||
| Energy | 1.97 | 2.15 | 2.29 | 2.04 | — | |
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
Financial leverage = Total assets ÷ Total Hess Corporation stockholders’ equity
= 21,695 ÷ 7,855 = 2.76
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Hess Corp. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Hess Corp., interest coverage 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) | ||||||
| Net income (loss) attributable to Hess Corporation | 2,096) | 559) | (3,093) | (408) | (282) | |
| Add: Net income attributable to noncontrolling interest | 351) | 331) | 254) | 168) | 167) | |
| Add: Income tax expense | 1,099) | 600) | (11) | 461) | 335) | |
| Add: Interest expense | 493) | 481) | 468) | 380) | 399) | |
| Earnings before interest and tax (EBIT) | 4,039) | 1,971) | (2,382) | 601) | 619) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 8.19 | 4.10 | -5.09 | 1.58 | 1.55 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 97.27 | 31.39 | -9.69 | 7.94 | — | |
| ConocoPhillips | 36.07 | 15.38 | -2.90 | 13.24 | — | |
| Exxon Mobil Corp. | 98.43 | 33.98 | -23.94 | 25.16 | — | |
| Marathon Petroleum Corp. | 18.13 | 3.22 | -9.21 | 4.50 | — | |
| Occidental Petroleum Corp. | 14.71 | 3.30 | -10.03 | 1.17 | — | |
| Valero Energy Corp. | 28.24 | 3.56 | -2.57 | 8.68 | — | |
| Interest Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 42.90 | 13.22 | -10.84 | 9.35 | — | |
| Interest Coverage, Industry | ||||||
| Energy | 39.88 | 12.58 | -11.55 | 6.66 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 4,039 ÷ 493 = 8.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Hess Corp. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
Hess Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| U.S. statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to Hess Corporation | 2,096) | 559) | (3,093) | (408) | (282) | |
| Add: Net income attributable to noncontrolling interest | 351) | 331) | 254) | 168) | 167) | |
| Add: Income tax expense | 1,099) | 600) | (11) | 461) | 335) | |
| Add: Interest expense | 493) | 481) | 468) | 380) | 399) | |
| Earnings before interest and tax (EBIT) | 4,039) | 1,971) | (2,382) | 601) | 619) | |
| Add: Operating lease cost | 114) | 88) | 200) | 414) | 154) | |
| Earnings before fixed charges and tax | 4,153) | 2,059) | (2,182) | 1,015) | 773) | |
| Interest expense | 493) | 481) | 468) | 380) | 399) | |
| Operating lease cost | 114) | 88) | 200) | 414) | 154) | |
| Preferred stock dividends | —) | —) | —) | 4) | 46) | |
| Preferred stock dividends, tax adjustment1 | —) | —) | —) | 1) | 12) | |
| Preferred stock dividends, after tax adjustment | —) | —) | —) | 5) | 58) | |
| Fixed charges | 607) | 569) | 668) | 799) | 611) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 6.84 | 3.62 | -3.27 | 1.27 | 1.26 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Chevron Corp. | 18.28 | 8.43 | -1.29 | 2.62 | — | |
| ConocoPhillips | 28.76 | 11.94 | -1.79 | 9.51 | — | |
| Exxon Mobil Corp. | 20.62 | 9.13 | -5.68 | 5.66 | — | |
| Marathon Petroleum Corp. | 13.15 | 2.52 | -5.84 | 3.13 | — | |
| Occidental Petroleum Corp. | 6.42 | 1.78 | -4.00 | 0.91 | — | |
| Valero Energy Corp. | 17.27 | 2.57 | -1.02 | 4.90 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 16.86 | 6.12 | -3.78 | 4.01 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Energy | 15.31 | 5.71 | -3.89 | 2.96 | — | |
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
Preferred stock dividends, tax adjustment = (Preferred stock dividends × U.S. statutory tax rate) ÷ (1 − U.S. statutory tax rate)
= (0 × 21.00%) ÷ (1 − 21.00%) = 0
2 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,153 ÷ 607 = 6.84
3 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Hess Corp. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |