EOG Resources Inc (EOG)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.12 | 0.13 | 0.19 | 0.20 | 0.16 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,765,000K ÷ ($3,765,000K + $28,090,000K)
= 0.12
The debt-to-capital ratio of EOG Resources, Inc. has shown a decreasing trend over the past five years, indicating the company's decreasing reliance on debt to finance its operations relative to its total capital structure.
In 2023, the debt-to-capital ratio stands at 0.12, which is the lowest among the five years presented. This suggests that only 12% of the company's capital is financed through debt, while the remaining 88% is financed through equity.
The decrease in the debt-to-capital ratio from 0.22 in 2020 to 0.12 in 2023 implies a significant improvement in the company's financial leverage situation. This reduction in debt relative to total capital may indicate that EOG Resources, Inc. has been paying down its debt, generating more equity through profits, or a combination of both.
Overall, the declining trend in the debt-to-capital ratio reflects a stronger financial position and reduced risk associated with debt repayment obligations for EOG Resources, Inc.
Peer comparison
Dec 31, 2023