EOG Resources Inc (EOG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.77 | 6.89 | 5.19 | 9.15 | 7.82 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.38 | 3.97 | 5.94 | 4.33 | 4.11 |
Inventory Turnover Ratio Analysis:
- EOG Resources Inc's inventory turnover has been fluctuating over the years, ranging from 5.19 to 9.15. A higher turnover indicates more efficient management of inventory, as products are sold and replaced more frequently within the period. The increase from 2020 to 2021 and subsequent decrease in 2022 suggests some variability in inventory management efficiency.
Receivables Turnover Ratio Analysis:
- Receivables turnover data is not provided for EOG Resources Inc for the years 2020 to 2024. Without this data, it is challenging to assess how quickly the company is collecting outstanding receivables from customers and managing its credit sales.
Payables Turnover Ratio Analysis:
- Payables turnover data is not available for EOG Resources Inc for the years 2020 to 2024. This information is crucial to understanding how efficiently the company is managing its payments to suppliers and creditors.
Working Capital Turnover Ratio Analysis:
- EOG Resources Inc's working capital turnover has shown a declining trend from 4.33 in 2021 to 3.38 in 2024. A decreasing working capital turnover may indicate less efficient utilization of the company's working capital to generate sales revenue. Further analysis of the company's operating cycle and management of working capital may be necessary to understand the reasons behind this decline.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.30 | 52.99 | 70.29 | 39.88 | 46.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, EOG Resources Inc's activity ratios can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates how many days it takes for a company to sell its entire inventory.
- EOG Resources Inc's DOH has fluctuated over the years, with a high of 70.29 days on December 31, 2022, and a low of 39.88 days on December 31, 2021.
- A decreasing trend in DOH is generally positive, as it suggests improved inventory management efficiency, while an increasing trend may indicate inventory build-up or slower sales.
2. Days of Sales Outstanding (DSO):
- Unfortunately, data for Days of Sales Outstanding (DSO) is not available for EOG Resources Inc for any of the specified years.
- DSO is used to evaluate how quickly a company collects its accounts receivable. A lower DSO is generally favorable as it indicates faster collection of sales.
3. Number of Days of Payables:
- Likewise, data for the Number of Days of Payables is not provided for EOG Resources Inc for the specified years.
- The Number of Days of Payables ratio reflects the average number of days it takes a company to pay its suppliers.
- A longer payment period may indicate favorable terms with suppliers, but it could also signal liquidity issues.
In conclusion, while the information provided allows for an evaluation of EOG Resources Inc's inventory management efficiency through its DOH ratio, a complete analysis of its activity ratios, including DSO and days of payables, is limited due to missing data.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.97 | 0.69 | 0.35 |
| Total asset turnover | 0.50 | 0.53 | 0.71 | 0.51 | 0.28 |
The fixed asset turnover ratio for EOG Resources Inc has shown a significant improvement over the years, increasing from 0.35 in 2020 to 0.97 in 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting better efficiency in utilizing its long-term assets for revenue generation.
On the other hand, the total asset turnover ratio for EOG Resources Inc has been more volatile, with fluctuations observed from 0.28 in 2020 to 0.71 in 2022 and then dropping to 0.50 in 2024. Despite the fluctuations, the company's ability to generate sales relative to its total assets has generally improved over the period, albeit with some setbacks in certain years.
Overall, the upward trend in fixed asset turnover and the mixed performance in total asset turnover suggest that EOG Resources Inc has been effectively managing its long-term assets to drive revenue generation, but there may be some variability in the company's efficiency in utilizing its total assets for sales generation.