EOG Resources Inc (EOG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 75.70% | 62.26% | 81.37% | 72.83% | 50.14% |
| Operating profit margin | 34.57% | 41.26% | 48.73% | 31.02% | 4.74% |
| Pretax margin | 35.15% | 41.63% | 33.57% | 30.16% | -7.49% |
| Net profit margin | 27.39% | 32.63% | 26.31% | 23.71% | -6.12% |
Based on the provided data on EOG Resources Inc's profitability ratios, let's analyze the trends:
1. Gross Profit Margin:
- EOG Resources Inc's gross profit margin has shown an increasing trend from 50.14% in 2020 to 75.70% in 2024. This indicates the company's ability to efficiently control production costs and generate higher profits from its revenue.
2. Operating Profit Margin:
- The operating profit margin of EOG Resources Inc has been fluctuating over the years, reaching its peak at 48.73% in 2022. Despite some variability, the overall trend shows an improvement in operational efficiency and profitability.
3. Pre-Tax Margin:
- EOG Resources Inc's pre-tax margin has exhibited a consistent growth trend from -7.49% in 2020 to 35.15% in 2024. This indicates the company's ability to manage its expenses and generate higher profits before taxes.
4. Net Profit Margin:
- The net profit margin of EOG Resources Inc has shown fluctuations over the years, with a peak at 32.63% in 2023. Despite some variability, the company has maintained a healthy level of profitability, reflecting its ability to effectively manage costs and generate net income.
Overall, EOG Resources Inc has demonstrated improvements in its profitability ratios over the years, showcasing efficient cost management and strong revenue generation capabilities, which are crucial for sustainable growth and value creation for its stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.13% | 21.90% | 34.73% | 15.96% | 1.31% |
| Return on assets (ROA) | 13.57% | 17.32% | 18.75% | 12.20% | -1.69% |
| Return on total capital | 28.47% | 35.02% | 40.68% | 27.55% | -0.08% |
| Return on equity (ROE) | 21.82% | 27.03% | 31.31% | 21.03% | -2.98% |
Based on the provided data, I have analyzed EOG Resources Inc's profitability ratios as follows:
1. Operating Return on Assets (Operating ROA):
- EOG Resources Inc's Operating ROA has shown significant improvement over the years, from 1.31% in December 2020 to 34.73% in December 2022. However, there was a slight decrease to 21.90% in December 2023 and 17.13% in December 2024, indicating fluctuating operational efficiency.
2. Return on Assets (ROA):
- The company's ROA has also displayed an upward trend, increasing from -1.69% in December 2020 to 18.75% in December 2022. Although there was a slight dip to 13.57% in December 2024, overall, EOG Resources Inc has been able to generate higher returns from its assets.
3. Return on Total Capital:
- EOG Resources Inc's Return on Total Capital has been robust, with a noticeable jump from -0.08% in December 2020 to 40.68% in December 2022. The ratio remained above 27% in subsequent years, indicating the company's effective use of capital to generate profits.
4. Return on Equity (ROE):
- The Return on Equity for EOG Resources Inc has followed a similar positive trajectory, increasing from -2.98% in December 2020 to 31.31% in December 2022. Subsequently, there was a gradual decline to 21.82% in December 2024, yet the company has maintained healthy returns for its shareholders.
In conclusion, EOG Resources Inc has demonstrated improved profitability ratios over the years, indicating efficient utilization of assets, capital, and equity to generate returns. These ratios suggest that the company has been able to enhance its operational performance and create value for its stakeholders.