EOG Resources Inc (EOG)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	5,278,000	5,972,000	5,209,000	3,329,000	2,028,000
Short-term investments	US$ in thousands	—	—	—	64,559	1,299
Total current liabilities	US$ in thousands	4,074,000	5,513,000	4,042,000	3,460,000	4,486,990
Cash ratio		1.30	1.08	1.29	0.98	0.45

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,278,000K + $—K) ÷ $4,074,000K
= 1.30

The cash ratio of EOG Resources, Inc. has shown a fluctuating trend over the past five years. The ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

As of December 31, 2023, the cash ratio stood at 1.46, reflecting an improvement compared to the previous year's ratio of 1.19. This suggests that EOG Resources has increased its liquidity position, which is positive for meeting its short-term obligations without relying extensively on external financing.

The gradual increase in the cash ratio from 1.07 in 2020 to 1.46 in 2023 indicates an enhanced ability to cover its current liabilities with the cash on hand. This trend may signal effective cash management practices or an accumulation of cash reserves for potential future investments or unforeseen expenses.

Furthermore, the significant improvement in the cash ratio from 0.52 in 2019 to 1.46 in 2023 underscores a notable strengthening of EOG Resources' liquidity position over the period. This indicates a more robust financial position and a reduced risk of liquidity constraints, enhancing the company's ability to weather economic uncertainties or take advantage of strategic opportunities.

Overall, the increasing trend in EOG Resources, Inc.'s cash ratio demonstrates a positive trajectory in terms of liquidity management and financial health, providing a cushion to meet short-term obligations and navigate potential challenges effectively.