EOG Resources Inc (EOG)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	8,693,000	10,047,000	9,612,000	7,643,000	5,609,000	5,513,000	5,488,000	5,501,000	5,722,000	5,714,000	5,648,000	5,573,000	5,345,000	5,213,630	5,036,940	4,773,730	4,922,930	5,093,660	5,358,380	5,726,820
Inventory	US$ in thousands	985,000	1,038,000	1,069,000	1,154,000	1,275,000	1,379,000	1,355,000	1,131,000	1,058,000	872,000	739,000	586,000	584,000	521,000	516,000	562,000	629,401	668,541	676,580	662,398
Inventory turnover		8.83	9.68	8.99	6.62	4.40	4.00	4.05	4.86	5.41	6.55	7.64	9.51	9.15	10.01	9.76	8.49	7.82	7.62	7.92	8.65

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,693,000K ÷ $985,000K
= 8.83

Inventory turnover indicates how many times a company's inventory is sold and replaced over a period. A higher turnover ratio suggests efficient inventory management and sales practices.

For EOG Resources Inc, the inventory turnover fluctuated over the years. It was around 8 to 9 times from March 2020 to June 2021, indicating a healthy rate of inventory cycling. However, there was a significant increase from June 2021 to September 2021, reaching 10.01, suggesting an even more efficient management of inventory.

Subsequently, the turnover ratio declined, reaching its lowest point of 4.00 by September 2023 before starting to increase again. The ratio rebounded to 9.68 by September 2024, signifying an improvement in inventory turnover efficiency.

The overall trend shows some volatility in EOG Resources Inc's inventory turnover, with periods of high turnover followed by lower turnover rates. This could be influenced by various factors such as demand fluctuations, production levels, and inventory management strategies.