EOG Resources Inc (EOG)

Days of inventory on hand (DOH)

		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
DOH	days	63.30	52.99	70.29	39.88	46.67

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.77
= 63.30

The days of inventory on hand (DOH) for EOG Resources Inc have shown fluctuations over the past five years. As of December 31, 2020, the company held inventory for an average of 46.67 days, which decreased to 39.88 days by December 31, 2021. However, there was a significant increase in DOH by December 31, 2022, with inventory being held for an average of 70.29 days. Subsequently, there was a slight decrease by December 31, 2023, with 52.99 days of inventory on hand. Finally, by the end of December 31, 2024, the DOH increased to 63.30 days.

The trend in the DOH indicates that EOG Resources Inc may have experienced challenges in managing its inventory levels efficiently, especially in 2022. The company should monitor its inventory turnover and assess the optimal level of inventory required to meet demand while minimizing carrying costs and potential obsolescence. A high DOH can tie up capital and indicate inefficiencies in the supply chain, while a low DOH may result in stockouts and potential lost sales. Further analysis and proactive inventory management strategies may be necessary to ensure optimal inventory levels and improve overall operational effectiveness.