EOG Resources Inc (EOG)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,837,000 | 10,080,000 | 6,111,000 | -534,000 | 3,730,000 |
| Long-term debt | US$ in thousands | 3,765,000 | 3,795,000 | 5,072,000 | 5,035,000 | 4,160,920 |
| Total stockholders’ equity | US$ in thousands | 28,090,000 | 24,779,000 | 22,180,000 | 20,302,000 | 21,640,000 |
| Return on total capital | 30.88% | 35.28% | 22.42% | -2.11% | 14.46% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,837,000K ÷ ($3,765,000K + $28,090,000K)
= 30.88%
The return on total capital for EOG Resources, Inc. has varied over the past five years. In 2023, the return on total capital was 30.45%, showing a decrease from the previous year's figure of 34.56%. However, both these figures are significantly higher compared to the returns in 2021, 2020, and 2019, which were 23.94%, 6.19%, and 15.37% respectively.
This indicates that EOG Resources, Inc. has seen fluctuations in its ability to generate returns on the total capital employed in its operations over the years. The decrease in 2023 suggests a potential change in the company's performance or capital structure. It would be important for investors and stakeholders to further investigate the reasons behind these fluctuations to assess the sustainability and efficiency of the company's capital utilization.
Peer comparison
Dec 31, 2023