EOG Resources Inc (EOG)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	3.99	4.13	4.65	4.15	3.96	3.96	4.90	5.51	5.18	5.62	9.31	8.55	4.10	4.01	4.44	3.51	4.11	5.41	5.36	7.49

EOG Resources Inc's activity ratios show fluctuating trends over the years.

- The inventory turnover ratio has been varying, peaking at 10.01 in September 2021 but declining to 4.40 in December 2023, before increasing again to 8.83 in December 2024. This suggests that the company is managing its inventory efficiently in some periods but faces challenges in others.

- The receivables turnover and payables turnover ratios were not provided, indicating that information on these specific ratios is not available for analysis.

- The working capital turnover ratio reflects the effectiveness of the company in generating revenue relative to its working capital. It ranged from 3.51 in March 2021 to 9.31 in June 2022. The increase in the ratio during specific periods indicates that the company was able to utilize its working capital more efficiently to generate sales.

Overall, EOG Resources Inc's activity ratios exhibit variability, suggestive of fluctuations in its operational efficiency and effectiveness in managing its working capital and inventory levels. It would be beneficial to have more information on receivables and payables turnover ratios to provide a more comprehensive analysis of the company's overall activity performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	41.36	37.71	40.59	55.11	82.97	91.30	90.12	75.04	67.49	55.70	47.76	38.38	39.88	36.47	37.39	42.97	46.67	47.91	46.09	42.22
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The analysis of EOG Resources Inc activity ratios reveals fluctuations in its Days of Inventory on Hand (DOH) metric over the past few years. The company managed its inventory efficiently, with DOH ranging from 37.39 days to 91.30 days during the period under review. In Q2 2023, there was a significant spike to 90.12 days, indicating a potential inventory management issue which was later rectified as DOH decreased to 55.11 days in Q1 2024.

However, data on Days of Sales Outstanding (DSO) and Number of Days of Payables were not available, making it challenging to obtain a comprehensive picture of the company's cash conversion cycle and management of trade receivables and payables. This lack of information hinders a holistic assessment of EOG Resources Inc's efficiency in collecting receivables and paying its obligations.

In conclusion, while EOG Resources Inc demonstrates adequate inventory management based on the available DOH data, a complete assessment of its activity ratios would require additional details on DSO and payables turnover to evaluate its overall working capital efficiency.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	0.75	0.82	0.90	0.85	0.86	0.77	0.67	0.66	0.54	0.45	0.35	0.35	0.39	0.45	0.55
Total asset turnover	0.50	0.52	0.53	0.52	0.53	0.55	0.61	0.67	0.62	0.62	0.58	0.50	0.49	0.42	0.35	0.28	0.28	0.32	0.37	0.44

Based on the provided data for EOG Resources Inc, we can analyze the long-term activity ratios as follows:

1. Fixed Asset Turnover: The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. EOG Resources Inc's fixed asset turnover has shown a fluctuating trend over the period from March 31, 2020, to September 30, 2023, ranging from 0.35 to 0.90. During this period, the ratio experienced some fluctuations but generally trended upwards, which indicates an improvement in the efficiency of using fixed assets to generate revenue. However, in the latter half of the period, the ratio plateaued around 0.85-0.90. The absence of data for the last three quarters of 2024 prevents a more recent analysis of this ratio.

2. Total Asset Turnover: The total asset turnover ratio measures how efficiently the company is using its total assets to generate revenue. EOG Resources Inc's total asset turnover ratio showed a similar fluctuating trend from March 31, 2020, to December 31, 2023, ranging from 0.28 to 0.67. Similar to fixed asset turnover, there was an overall increasing trend, indicating improved efficiency in asset utilization. However, the ratio also stabilized around the latter part of the period, fluctuating between 0.50 and 0.67.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that EOG Resources Inc has been gradually improving its efficiency in generating revenue from its assets over the analyzed period. It is important for the company to continue monitoring and analyzing these ratios to ensure sustained operational efficiency and profitability in the long term.