EOG Resources Inc (EOG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 2,716,000 | 2,871,000 | 2,335,000 | 1,522,000 | 2,001,660 |
| Total current liabilities | US$ in thousands | 4,074,000 | 5,513,000 | 4,042,000 | 3,460,000 | 4,486,990 |
| Quick ratio | 1.96 | 1.60 | 1.87 | 1.42 | 0.90 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,278,000K
+ $—K
+ $2,716,000K)
÷ $4,074,000K
= 1.96
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1.0 indicates that a company has enough liquid assets to cover its current liabilities.
Over the past five years, EOG Resources, Inc.'s quick ratio has generally been above 1.0, indicating a healthy liquidity position. The quick ratio improved steadily from 1.00 in 2019 to 2.13 in 2023, suggesting that the company has been able to enhance its ability to meet short-term obligations with liquid assets.
In 2023, EOG Resources, Inc. had a quick ratio of 2.13, which indicates a significant improvement in liquidity compared to the previous years. This means that the company had $2.13 in liquid assets for every $1 of current liabilities, demonstrating a strong ability to cover its short-term obligations. The increase in the quick ratio over the years reflects positively on the company's liquidity management and its ability to handle unexpected cash needs efficiently.
Overall, the trend of EOG Resources, Inc.'s quick ratio indicates a positive liquidity position and suggests that the company has been effectively managing its short-term financial obligations.
Peer comparison
Dec 31, 2023