EOG Resources Inc (EOG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.30 | 52.99 | 70.29 | 39.88 | 46.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 63.30 | 52.99 | 70.29 | 39.88 | 46.67 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.30 + — – —
= 63.30
The analysis of EOG Resources Inc's cash conversion cycle over the past five years shows a fluctuating trend. As of December 31, 2020, the company had a cash conversion cycle of 46.67 days, which decreased to 39.88 days by December 31, 2021. However, there was a significant increase in the cash conversion cycle to 70.29 days by December 31, 2022. Subsequently, the cycle decreased to 52.99 days by December 31, 2023, before increasing again to 63.30 days by December 31, 2024.
The variations in the cash conversion cycle indicate changes in EOG Resources Inc's efficiency in managing its working capital. A longer cash conversion cycle may suggest potential challenges in converting inventory and receivables into cash, which could impact the company's liquidity and operational efficiency. On the other hand, a shorter cash conversion cycle indicates faster conversion of inventory and receivables into cash, leading to improved liquidity and operational performance.
Overall, monitoring the cash conversion cycle can provide insights into EOG Resources Inc's working capital management practices and efficiency in converting its assets into cash.
Peer comparison
Dec 31, 2024