EOG Resources Inc (EOG)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 2.60 | 2.44 | 1.90 | 2.12 | 1.69 |
| Quick ratio | 1.64 | 1.30 | 1.08 | 1.29 | 0.98 |
| Cash ratio | 1.64 | 1.30 | 1.08 | 1.29 | 0.98 |
Based on the liquidity ratios of EOG Resources Inc, the company's current ratio has shown an overall increasing trend over the years, indicating an improving ability to cover its short-term obligations with its current assets. Specifically, the current ratio increased from 1.69 in 2020 to 2.60 in 2024, surpassing the ideal threshold of 2. This suggests that EOG Resources Inc has ample current assets to meet its current liabilities.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also exhibited a positive trajectory. The quick ratio rose from 0.98 in 2020 to 1.64 in 2024, consistently above 1, indicating a strong ability to cover short-term obligations without relying on inventory.
Moreover, the cash ratio, which focuses solely on cash and cash equivalents to cover current liabilities, mirrored the trend seen in the quick ratio. EOG Resources Inc's cash ratio increased from 0.98 in 2020 to 1.64 in 2024, reinforcing the company's capacity to pay off immediate debts using cash resources alone.
Overall, the upward trends in all three liquidity ratios suggest that EOG Resources Inc has improved its short-term financial position, which could enhance the company's ability to navigate unforeseen challenges and meet its obligations in a timely manner.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 63.30 | 52.99 | 70.29 | 39.88 | 46.67 |
The cash conversion cycle of EOG Resources Inc has fluctuated over the past five years. In 2020, the company's cash conversion cycle was 46.67 days, which decreased to 39.88 days in 2021 indicating an improvement in efficiency. However, in 2022, the cycle significantly increased to 70.29 days, suggesting a delay in converting resources into cash. This trend continued in 2023 with a cash conversion cycle of 52.99 days. In 2024, there was a slight increase to 63.3 days compared to the previous year. Overall, the company's cash conversion cycle demonstrates varying efficiency levels in managing its cash flows and working capital over the five-year period.