EOG Resources Inc (EOG)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	8,356,000	9,837,000	10,080,000	6,111,000	-17,088
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	29,351,000	28,090,000	24,779,000	22,180,000	20,301,900
Return on total capital		28.47%	35.02%	40.68%	27.55%	-0.08%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $8,356,000K ÷ ($—K + $29,351,000K)
= 28.47%

Based on the provided data, EOG Resources Inc's return on total capital has shown significant fluctuations over the period from 2020 to 2024. In 2020, the company reported a negative return on total capital of -0.08%, indicative of a period of underperformance. However, there has been a notable improvement in subsequent years.

In 2021, EOG Resources experienced a substantial increase in its return on total capital to 27.55%, demonstrating a strong recovery and improved capital efficiency. The trend continued in 2022, with the return on total capital increasing to 40.68%, indicating the company's ability to generate higher returns relative to the total capital employed.

Although there was a slight decline in 2023, with the return on total capital at 35.02%, it still remained at a relatively high level compared to the base year of 2020. In 2024, the return on total capital decreased further to 28.47%, suggesting a potential dip in capital efficiency or profitability.

Overall, the trend in EOG Resources Inc's return on total capital reflects a mixed performance over the period, with notable improvements in certain years but also some fluctuations. Further analysis would be needed to understand the specific factors driving these changes and to assess the company's overall capital allocation and operational efficiency strategies.