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.
Peer comparison
Dec 31, 2023