EOG Resources Inc (EOG)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	5,680,000	8,783,000	5,494,000	5,345,000	4,922,940
Inventory	US$ in thousands	985,000	1,275,000	1,058,000	584,000	629,401
Inventory turnover		5.77	6.89	5.19	9.15	7.82

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,680,000K ÷ $985,000K
= 5.77

Inventory turnover measures how efficiently a company manages its inventory by showing how many times in a year the company sells and replaces its inventory. For EOG Resources Inc, the inventory turnover has fluctuated over the past five years. In 2020, the inventory turnover was 7.82, indicating that EOG Resources Inc turned over its inventory approximately 7.82 times during that year.

By the end of 2021, the inventory turnover had improved to 9.15, which suggests that the company managed its inventory more efficiently, selling and replacing it more frequently during the year. However, by the end of 2022, the inventory turnover dropped to 5.19, indicating a decrease in inventory turnover efficiency.

In 2023, the inventory turnover improved to 6.89, but it was still lower than in 2021. By the end of 2024, the inventory turnover decreased to 5.77, showing that the company's inventory turnover efficiency declined compared to the previous year.

Overall, EOG Resources Inc's inventory turnover has shown fluctuations over the five-year period, with improvements in some years and declines in others. Monitoring the inventory turnover ratio can provide insights into the company's inventory management efficiency and help assess its operational performance.