EOG Resources Inc (EOG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.09 | 0.13 | 0.14 | 0.11 |
| Debt-to-capital ratio | 0.12 | 0.13 | 0.19 | 0.20 | 0.16 |
| Debt-to-equity ratio | 0.13 | 0.15 | 0.23 | 0.25 | 0.19 |
| Financial leverage ratio | 1.56 | 1.67 | 1.72 | 1.76 | 1.72 |
The solvency ratios of EOG Resources, Inc. indicate the company's ability to meet its long-term financial obligations and the extent to which it is reliant on debt for its operations.
1. Debt-to-assets ratio:
- The trend for the debt-to-assets ratio shows a decreasing pattern from 2019 to 2023, indicating that EOG Resources, Inc. has been effectively managing its debt in relation to its total assets. With a ratio of 0.09 in 2023, the company is utilizing debt conservatively, implying that only 9% of its total assets are financed by debt.
2. Debt-to-capital ratio:
- EOG Resources, Inc.'s debt-to-capital ratio has also been decreasing over the years, showing an improving financial position with respect to its capital structure. In 2023, the ratio of 0.12 indicates that 12% of the company's capital is funded by debt, further reinforcing its prudent debt management approach.
3. Debt-to-equity ratio:
- The declining trend in the debt-to-equity ratio signifies that EOG Resources, Inc. has been steadily reducing its reliance on debt in favor of equity financing. A ratio of 0.14 in 2023 highlights that only 14% of the company's total equity is comprised of debt, demonstrating a stronger equity base compared to previous years.
4. Financial leverage ratio:
- The financial leverage ratio for EOG Resources, Inc. has also exhibited a decreasing trend, reflecting the company's effort to decrease its reliance on debt to finance its operations. A ratio of 1.56 in 2023 suggests that the company's assets are funded 1.56 times by equity for every dollar of debt, signaling a favorable leverage position.
Overall, the solvency ratios of EOG Resources, Inc. indicate a positive financial standing with a decreasing reliance on debt and improving balance between debt and equity in its capital structure. This trend reflects the company's commitment to maintaining solvency and financial stability in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 66.47 | 56.31 | 34.33 | -2.60 | 20.16 |
EOG Resources, Inc.'s interest coverage ratio has shown a positive trend over the past five years, indicating the company's improving ability to meet its interest obligations from its operating income. The interest coverage ratio was 65.61 in 2023, which reflects a significant increase from 57.65 in 2022 and a substantial improvement from 36.70 in 2021. The company's interest coverage was much lower in 2020 at 7.87, suggesting a potential risk in meeting interest payments with operating income during that period. However, the ratio increased to a healthier level in 2019 at 22.26.
Overall, the consistent improvement in EOG Resources, Inc.'s interest coverage ratio indicates a strengthening financial position and enhanced ability to service its debt through its operating profits. This trend is generally seen as positive by investors and creditors as it signifies the company's capacity to handle its interest obligations comfortably.