EOG Resources Inc (EOG)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	23,378,000	23,273,000	29,492,000	19,669,000	9,873,240
Total current assets	US$ in thousands	11,230,000	9,935,000	10,475,000	8,584,000	5,862,170
Total current liabilities	US$ in thousands	4,318,000	4,074,000	5,513,000	4,042,000	3,460,100
Working capital turnover		3.38	3.97	5.94	4.33	4.11

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,378,000K ÷ ($11,230,000K – $4,318,000K)
= 3.38

Based on the provided data, EOG Resources Inc's working capital turnover has shown variability over the years. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue.

In December 2020, the working capital turnover ratio was 4.11, indicating that the company generated $4.11 in revenue for every dollar of working capital invested. The ratio improved slightly to 4.33 in December 2021, suggesting a slightly more efficient use of working capital.

A significant increase was observed in December 2022, with the working capital turnover ratio jumping to 5.94. This implies a substantial increase in revenue generation relative to the working capital invested, indicating improved efficiency in the utilization of working capital.

However, there was a decline in the ratio in December 2023 to 3.97, which may indicate a less efficient use of working capital for revenue generation compared to the previous year. This decrease could be a result of various factors, such as changes in the company's operations or financial management.

The working capital turnover ratio further decreased to 3.38 in December 2024, indicating a continued decline in the efficiency of working capital utilization for revenue generation. This decline may raise concerns about the company's ability to efficiently manage its working capital resources in generating revenue.

Overall, the trend in EOG Resources Inc's working capital turnover ratio shows fluctuations over the years, with both improvements and declines in efficiency. Further analysis of the company's financial and operational performance would be necessary to understand the factors influencing these changes in the working capital turnover ratio.