EOG Resources Inc (EOG)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.10 | 2.31 | 2.12 | 2.32 | 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 |
| Quick ratio | 1.32 | 1.39 | 1.17 | 1.24 | 1.30 | 1.26 | 1.28 | 1.19 | 1.08 | 0.92 | 0.53 | 0.64 | 1.29 | 1.24 | 0.97 | 1.02 | 0.96 | 1.02 | 1.12 | 0.68 |
| Cash ratio | 1.32 | 1.39 | 1.17 | 1.24 | 1.30 | 1.26 | 1.28 | 1.19 | 1.08 | 0.92 | 0.53 | 0.64 | 1.29 | 1.24 | 0.97 | 1.02 | 0.96 | 1.02 | 1.12 | 0.68 |
The current ratio for EOG Resources Inc has shown some fluctuations over the past few years, ranging from 1.35 to 2.44. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations. EOG's current ratio has mostly been above 1, indicating a relatively healthy liquidity position.
The quick ratio, which is a more stringent measure of liquidity, has also varied over the same period, ranging from 0.53 to 1.39. A quick ratio above 1 suggests that the company can meet its short-term liabilities without relying on the sale of inventory. EOG's quick ratio has generally been above 1, indicating a reasonable ability to cover immediate obligations with its most liquid assets.
The cash ratio, which is the most conservative liquidity measure, has exhibited similar fluctuations to the quick ratio, with values ranging from 0.53 to 1.39. This ratio focuses solely on cash and cash equivalents to assess the company's ability to cover its current liabilities. EOG's cash ratio has also been generally above 1, suggesting a solid ability to settle short-term obligations with its cash holdings.
Overall, EOG Resources Inc's liquidity ratios indicate that the company has maintained a satisfactory level of liquidity over the years, with the ability to meet its short-term financial obligations using its current assets and cash reserves.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 41.36 | 37.71 | 40.59 | 55.11 | 82.97 | 91.30 | 90.12 | 75.04 | 67.49 | 55.70 | 47.76 | 38.38 | 39.88 | 36.47 | 37.39 | 42.97 | 46.67 | 47.91 | 46.09 | 42.22 |
The cash conversion cycle of EOG Resources Inc, a measure of how efficiently the company manages its cash flow from operations, inventory, and receivables, exhibited fluctuations over the specified period.
From March 31, 2020, to December 31, 2022, the cash conversion cycle fluctuated within a range of approximately 38 to 68 days, indicating some volatility in the company's working capital management. Notably, there was a peak in the cycle during the second quarter of 2023, reaching 90.12 days, suggesting a potential challenge in converting resources into cash efficiently during that period.
However, EOG Resources managed to improve its cash conversion efficiency in the subsequent quarters, with the cycle declining to 40.59 days by June 30, 2024, and further decreasing to 37.71 days by September 30, 2024. This reduction may indicate enhanced operational effectiveness in managing cash flows, inventory turnover, and receivables.
Overall, the company's cash conversion cycle has experienced fluctuations, but the recent trend towards shorter cycle times from mid-2023 to the end of 2024 demonstrates an improvement in working capital efficiency, potentially leading to better cash flow management and liquidity for EOG Resources Inc.