EOG Resources Inc (EOG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.44 | 2.43 | 2.39 | 2.17 | 1.90 | 1.78 | 1.41 | 1.35 | 2.12 | 2.11 | 1.73 | 1.87 | 1.69 | 1.69 | 2.13 | 1.51 | 1.18 | 1.08 | 1.02 | 1.14 |
| Quick ratio | 1.96 | 1.95 | 1.88 | 1.77 | 1.60 | 1.52 | 1.18 | 1.15 | 1.87 | 1.85 | 1.48 | 1.57 | 1.40 | 1.39 | 1.56 | 1.01 | 0.90 | 0.78 | 0.72 | 0.78 |
| Cash ratio | 1.30 | 1.26 | 1.28 | 1.19 | 1.08 | 0.92 | 0.53 | 0.64 | 1.29 | 1.23 | 0.97 | 1.02 | 0.96 | 1.02 | 1.12 | 0.68 | 0.45 | 0.35 | 0.26 | 0.26 |
EOG Resources, Inc.'s liquidity ratios have shown a positive trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has steadily increased from 1.35 in Q1 2022 to 2.44 in Q4 2023. This indicates that EOG Resources has improved its short-term liquidity position.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also exhibited an increasing trend, rising from 1.26 in Q1 2022 to 2.13 in Q4 2023. This suggests that the company has sufficient liquid assets to meet its immediate obligations without relying on inventory.
Furthermore, the cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents alone, has shown a consistent uptrend from 0.64 in Q1 2022 to 1.46 in Q4 2023. This suggests that EOG Resources has been strengthening its cash position relative to its short-term obligations.
Overall, the improving liquidity ratios of EOG Resources, Inc. demonstrate the company's ability to efficiently manage its working capital and meet its short-term financial obligations, reflecting positively on its financial health and stability.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of EOG Resources, Inc. has exhibited some fluctuations over the past eight quarters. In Q3 2022, the company had the longest cash conversion cycle of 53.44 days, indicating that it took the company over 53 days to convert its investments in inventory and accounts receivable into cash. However, in Q1 2023, the company managed to reduce its cash conversion cycle to 36.10 days, the shortest in the given period. This suggests that EOG Resources, Inc. improved its efficiency in managing its working capital during that quarter.
Overall, the trend in the cash conversion cycle appears to be improving, with some fluctuations from quarter to quarter. EOG Resources, Inc. should continue to focus on managing its inventory and accounts receivable effectively to optimize its cash conversion cycle and enhance its liquidity position in the long run.