EOG Resources Inc (EOG)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	24,186,000	25,702,000	18,642,000	11,032,000	17,380,000
Total current assets	US$ in thousands	9,935,000	10,475,000	8,584,000	5,862,000	5,273,340
Total current liabilities	US$ in thousands	4,074,000	5,513,000	4,042,000	3,460,000	4,486,990
Working capital turnover		4.13	5.18	4.10	4.59	22.10

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $24,186,000K ÷ ($9,935,000K – $4,074,000K)
= 4.13

The working capital turnover of EOG Resources, Inc. has shown fluctuations over the past five years. In 2019, the company had a significantly high working capital turnover of 21.94, indicating that it generated $21.94 in revenue for each dollar of working capital invested. This exceptionally high turnover could suggest efficient management of working capital during that year.

However, in the subsequent years, the working capital turnover decreased and ranged between 4.10 to 5.16, indicating a lower efficiency in utilizing working capital to generate revenue. A lower working capital turnover typically suggests that the company is not generating as much revenue per dollar of working capital invested, which could be attributed to various factors like a change in business operations, investment decisions, or changes in industry dynamics.

Overall, the trend in EOG Resources, Inc.'s working capital turnover implies a decline in efficiency over the past few years, highlighting the importance of monitoring and managing working capital effectively to optimize the company's financial performance.