EOG Resources Inc (EOG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.61 | 1.56 | 1.67 | 1.72 | 1.76 |
Based on the provided data for EOG Resources Inc, the solvency ratios paint a picture of a company with a very strong financial position in terms of its ability to meet its long-term obligations.
1. Debt-to-assets ratio: EOG Resources Inc has maintained a consistently low debt-to-assets ratio of 0.00 over the years 2020 to 2024. This indicates that the company's total assets are primarily financed through equity rather than debt, which is a positive indicator of financial stability.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio is also at 0.00 for the same period. This ratio reflects the proportion of the company's capital that is financed through debt, and EOG Resources Inc shows that it relies more on equity rather than debt for funding its operations.
3. Debt-to-equity ratio: The debt-to-equity ratio for EOG Resources Inc is also consistently at 0.00 across the years. A low debt-to-equity ratio indicates that the company has a minimal level of debt relative to its equity, suggesting a lower financial risk.
4. Financial leverage ratio: The financial leverage ratio has shown a slight fluctuation over the years, ranging from 1.56 to 1.76. Even though there is some variability, the ratio remains relatively stable and indicates that the company is using its assets efficiently to generate profits.
In conclusion, EOG Resources Inc appears to have a robust financial position with minimal reliance on debt for funding its operations. The company's consistent low debt ratios and relatively stable financial leverage ratio suggest a healthy solvency position and a lower risk of defaulting on its financial obligations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 60.55 | 66.47 | 56.31 | 34.33 | -0.08 |
The interest coverage ratio for EOG Resources Inc has shown a significant improvement over the years. Starting on December 31, 2020, with a negative value indicating inability to cover interest expenses, the ratio has steadily increased to reach 34.33 on December 31, 2021, reflecting a more comfortable position in meeting interest obligations. Subsequently, the ratio continued to demonstrate strong growth, reaching 56.31 on December 31, 2022, and further improving to 66.47 on December 31, 2023. However, there was a slight decrease in the interest coverage ratio to 60.55 on December 31, 2024, suggesting a minor decline in the ability to cover interest expenses compared to the previous year. Overall, the trend indicates a positive financial performance with a strong ability to meet interest payments in the recent years.