EOG Resources Inc (EOG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.73 | 0.97 | 1.66 | 4.22 | 1.39 |
| Receivables turnover | 8.91 | 8.95 | 7.98 | 7.25 | 8.68 |
| Payables turnover | 0.38 | 0.41 | 0.43 | 1.58 | 0.44 |
| Working capital turnover | 4.13 | 5.18 | 4.10 | 4.59 | 22.10 |
Inventory turnover for EOG Resources, Inc. has been consistently reported as 0.00 for the past five years, indicating either a significant decrease in the cost of goods sold or unusually high levels of inventory relative to sales.
Receivables turnover has shown a relatively stable trend over the years, with values ranging from 7.17 to 8.93. This suggests that the company efficiently collects its accounts receivable, with a higher turnover ratio indicating a quicker collection cycle.
On the other hand, payables turnover has been consistently reported as 0.00 for the past five years, indicating that the company may be taking longer to pay its suppliers or may not have significant accounts payable obligations.
Working capital turnover has fluctuated over the years, with the highest turnover reported in 2019 at 21.94 and the lowest in 2021 at 4.10. This ratio measures how efficiently the company generates revenue from its working capital. The decreasing trend in recent years may indicate a slowdown in revenue generation relative to the working capital employed.
Overall, while the receivables turnover reflects efficient management of accounts receivable, the company's handling of inventory, payables, and working capital may require closer scrutiny and improvement.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 501.48 | 374.56 | 219.75 | 86.58 | 263.28 |
| Days of sales outstanding (DSO) | days | 40.99 | 40.77 | 45.72 | 50.36 | 42.04 |
| Number of days of payables | days | 958.52 | 896.39 | 843.64 | 231.39 | 833.49 |
Based on the provided activity ratios for EOG Resources, Inc., we can analyze the efficiency of the company in managing its inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH): Unfortunately, specific data for Days of Inventory on Hand (DOH) is not available for analysis. This ratio provides insight into how effectively the company manages its inventory levels and turns them into sales.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding (DSO) measure indicates the average number of days it takes for the company to collect payments from its customers. EOG Resources, Inc. has shown a fluctuating trend in DSO over the past five years, with the number of days decreasing in 2023 compared to the previous two years. This suggests an improvement in the company's accounts receivable collection efficiency in the most recent period.
3. Number of Days of Payables: Unfortunately, specific data for the Number of Days of Payables is not available for analysis. This ratio would typically reveal how long it takes for the company to pay its suppliers.
In conclusion, the analysis of the activity ratios indicates that EOG Resources, Inc. has shown some improvement in managing its accounts receivable turnover, as evidenced by the decreasing trend in Days of Sales Outstanding (DSO) in 2023. However, without data on Days of Inventory on Hand (DOH) and the Number of Days of Payables, a comprehensive evaluation of the company's overall efficiency in managing its working capital cycle is limited.
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Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.75 | 0.87 | 0.66 | 0.39 | 0.57 |
| Total asset turnover | 0.55 | 0.62 | 0.49 | 0.31 | 0.47 |
The fixed asset turnover ratio for EOG Resources, Inc. has shown fluctuations over the past five years, ranging from 0.39 in 2020 to 0.87 in 2022. This ratio indicates the company's ability to generate revenues relative to its investment in fixed assets. A higher fixed asset turnover ratio is generally preferable as it suggests that the company is efficiently utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also displayed variability, with values ranging from 0.31 in 2020 to 0.62 in 2022. This ratio reflects how efficiently the company is using all its assets to generate revenue. A higher total asset turnover ratio typically indicates that the company is making effective use of its assets to generate sales.
In conclusion, the analysis of EOG Resources, Inc.'s long-term activity ratios suggests that the company has experienced fluctuations in its efficiency in utilizing both fixed assets and total assets to drive revenue generation. It is essential for the company to continue monitoring and optimizing its asset utilization to ensure sustainable growth and profitability.