EOG Resources Inc (EOG)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	928,000	1,031,000	970,000	2,651,690	1,063,760
Payables	US$ in thousands	2,437,000	2,532,000	2,242,000	1,681,000	2,429,130
Payables turnover		0.38	0.41	0.43	1.58	0.44

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $928,000K ÷ $2,437,000K
= 0.38

The payables turnover ratio for EOG Resources, Inc. has consistently been reported as 0.00 over the past five years (from 2019 to 2023). A payables turnover ratio of 0.00 indicates that the company is not effectively managing its accounts payable and is taking an excessive amount of time to pay its suppliers. This could be due to various reasons such as poor supplier relationships, inefficiencies in the accounts payable process, or extended payment terms.

An excessively low payables turnover ratio can sometimes be a red flag for financial distress or operational inefficiencies within the company. It is essential for EOG Resources, Inc. to review and improve its payables management practices to optimize cash flow, maintain good relationships with suppliers, and enhance overall financial performance. Further analysis and investigation into the company's payables management processes may be necessary to identify the root causes of the consistently low payables turnover ratio.