EOG Resources Inc (EOG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 43,857,000 | 41,371,000 | 38,236,000 | 35,805,000 | 37,125,000 |
| Total stockholders’ equity | US$ in thousands | 28,090,000 | 24,779,000 | 22,180,000 | 20,302,000 | 21,640,000 |
| Financial leverage ratio | 1.56 | 1.67 | 1.72 | 1.76 | 1.72 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,857,000K ÷ $28,090,000K
= 1.56
The financial leverage ratio of EOG Resources, Inc. has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio decreased from 1.72 in 2021 to 1.56 in 2023. A lower financial leverage ratio suggests that the company has a stronger equity position compared to debt, which can be viewed positively by investors and creditors. This trend signifies that EOG Resources has been managing its debt levels effectively and improving its financial stability over the years. It indicates a more conservative approach to leverage, which may enhance the company's financial flexibility and resilience to economic downturns.
Peer comparison
Dec 31, 2023