EOG Resources Inc (EOG)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	514.80	541.80	509.87	407.92	382.35	300.26	262.39	219.83	224.85	225.90	229.33	187.41	87.36	90.14	89.87	94.87	269.54	288.79	347.79	253.99
Days of sales outstanding (DSO)	days	40.99	43.52	31.87	32.28	40.77	50.11	61.41	61.95	45.72	50.52	56.69	66.67	50.35	33.42	23.84	29.33	42.04	39.91	40.34	45.56
Number of days of payables	days	983.97	968.09	829.72	879.32	915.03	935.92	1,028.25	997.84	863.22	855.04	894.21	648.61	233.46	167.86	170.18	414.25	853.30	888.90	973.26	723.61
Cash conversion cycle	days	-428.18	-382.77	-287.98	-439.12	-491.91	-585.54	-704.45	-716.07	-592.65	-578.62	-608.19	-394.53	-95.75	-44.30	-56.47	-290.05	-541.73	-560.20	-585.13	-424.07

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 514.80 + 40.99 – 983.97
= -428.18

The cash conversion cycle of EOG Resources, Inc. has shown fluctuating trends over the past eight quarters. In Q3 2023, the company's cash conversion cycle decreased to 52.72 days from 53.44 days in the previous quarter, indicating an improvement in the efficiency of its working capital management. However, in Q2 2023, the cycle decreased even further to 38.05 days, which was the lowest observed in the provided data.

Overall, EOG Resources, Inc. appears to have effectively managed its cash conversion cycle in the recent quarters, with fluctuations possibly influenced by changes in operational processes or market conditions. The company should continue to monitor and analyze its cash conversion cycle to ensure optimal utilization of its resources and maintain healthy liquidity levels.