EOG Resources Inc (EOG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,935,000 | 10,475,000 | 8,584,000 | 5,862,000 | 5,273,340 |
| Total current liabilities | US$ in thousands | 4,074,000 | 5,513,000 | 4,042,000 | 3,460,000 | 4,486,990 |
| Current ratio | 2.44 | 1.90 | 2.12 | 1.69 | 1.18 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,935,000K ÷ $4,074,000K
= 2.44
The current ratio of EOG Resources, Inc. has exhibited a fluctuating trend over the past five years, ranging from 1.18 in 2019 to 2.44 in 2023.
A higher current ratio is generally considered favorable as it indicates the company's ability to meet its short-term obligations using its current assets.
In 2023, the current ratio improved to 2.44, signaling that EOG Resources, Inc. had $2.44 in current assets for every dollar of current liabilities. This suggests that the company was in a stronger position to cover its short-term liabilities compared to the previous years.
However, it is essential to note that a very high current ratio may indicate that the company is not efficiently utilizing its current assets, leading to potential liquidity issues. Therefore, while the increasing trend in EOG Resources, Inc.'s current ratio is positive, it is important for the company to strike a balance between liquidity and efficient asset management.
Peer comparison
Dec 31, 2023