EOG Resources Inc. (NYSE:EOG)

Asset Turnover

The reported total asset turnover declined from 0.32 in 2015 to 0.26 in 2016, followed by a gradual improvement reaching 0.51 in 2018 before slightly decreasing to 0.47 in 2019. Adjusted total asset turnover exhibits a very similar trend, starting at 0.32, dropping to 0.26, and then increasing to 0.5 in 2018, before stabilizing at 0.47 in 2019. This suggests increasing efficiency in asset utilization after 2016, peaking in 2018.

Current Ratio

The reported current ratio increased from 1.42 in 2015 to a peak of 1.75 in 2016, then declined steadily to 1.18 by 2019. Adjusted values follow the same pattern but start slightly lower at 1.34 in 2015. This indicates a weakening short-term liquidity position after 2016, with a gradual reduction in the cushion of current assets over current liabilities.

Debt to Equity Ratio

Both reported and adjusted debt to equity ratios show a consistent decline over the years, with reported figures moving from 0.51 in 2015 to 0.24 in 2019, and adjusted figures from 0.40 to 0.22. This reflects a deliberate reduction in financial leverage and reliance on debt relative to equity.

Debt to Capital Ratio

Similarly, reported debt to capital ratio decreased from 0.34 in 2015 to 0.19 in 2019, and adjusted debt to capital followed a comparable trend from 0.29 to 0.18. This trend suggests a strengthening capital structure via lower proportionate debt within total capital.

Financial Leverage

Reported financial leverage showed a decrease from 2.08 in 2015 to 1.72 in 2019, indicating less use of debt financing. Adjusted financial leverage remained below reported figures but also declined steadily from 1.56 to 1.39. This is consistent with the reduction in debt ratios.

Net Profit Margin

The reported net profit margin exhibited significant improvement over the period, beginning with a substantial loss margin of -51.66% in 2015, improving to a positive 23.04% by 2017, and slightly declining to 15.74% in 2019. Adjusted net profit margin followed a similar trajectory but started at a more negative -80.13% and continued improving to 20.72% by 2019. This reflects a strong turnaround in profitability after a period of heavy losses.

Return on Equity (ROE)

The reported ROE improved markedly from -34.96% in 2015 to a peak of 17.66% in 2018, before declining to 12.64% in 2019. Adjusted ROE also increased from -40.38% to 18.84% by 2018, then dropped slightly to 13.5% in 2019. The trend indicates recovery and growth in shareholder returns following initial negative performance.

Return on Assets (ROA)

Reported ROA rose from -16.77% in 2015 to 10.08% in 2018 and then decreased to 7.37% in 2019. Adjusted ROA showed improvement from -25.81% to 13.01% in 2018, before falling to 9.7% in 2019. These movements suggest enhanced asset profitability after a challenging period, although some decline is seen at the end.

The analysis of the financial data reveals several key trends in the company's performance over the five-year period.

Operating Revenues and Other

Operating revenues showed an initial decline from approximately $8.76 billion in 2015 to about $7.65 billion in 2016. This was followed by significant growth in the subsequent years, reaching around $11.21 billion in 2017 and peaking at approximately $17.28 billion in 2018. Revenues stabilized near this peak level in 2019, with a marginal increase to roughly $17.38 billion.

Total Assets

Total assets exhibited consistent growth throughout the period. Starting at approximately $26.98 billion in 2015, assets increased steadily year-over-year to reach about $37.12 billion by the end of 2019. This represents a cumulative increase of nearly 38% over the five years.

Reported Total Asset Turnover

The reported total asset turnover ratio experienced fluctuations. It declined from 0.32 in 2015 to 0.26 in 2016, indicating less efficient asset utilization in generating revenues during that year. However, from 2017 onwards, the ratio improved markedly to 0.38 in 2017 and peaked at 0.51 in 2018. In 2019, it decreased slightly to 0.47, signaling a small reduction in asset efficiency relative to the previous year but remaining substantially higher than earlier years.

Adjusted Total Assets

Adjusted total assets followed a similar upward trend as total assets, starting slightly above $27.18 billion in 2015 and rising each year to about $37.12 billion in 2019. The incremental increases reflect ongoing investments or revaluations contributing to the expanded asset base.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrored the pattern of the reported ratio. After declining from 0.32 in 2015 to 0.26 in 2016, the ratio steadily increased until 2018, reaching 0.50, with a slight decrease to 0.47 in 2019. This suggests a consistent trend in asset efficiency whether using reported or adjusted asset figures.

Overall, the data indicate that after an initial downturn in 2016, the company experienced substantial growth in operating revenues alongside an expanding asset base. The improved asset turnover ratios from 2017 onwards suggest enhanced efficiency in utilizing assets to generate revenue during this growth phase. Despite the growth in assets, the company managed to increase revenue proportionally, reflecting positively on its operational effectiveness over the medium term.

The analysis of the annual financial data reveals several key trends related to liquidity and the management of current assets and liabilities.

Current Assets

There is a general upward trend in current assets over the five-year period. Starting at approximately $2.59 billion in 2015, current assets increase to about $5.27 billion by the end of 2019. However, there is a slight decline noted in 2017 compared to 2016, suggesting a brief contraction before the significant rise in 2018 and 2019.

Current Liabilities

Current liabilities show a consistent increase each year, rising from approximately $1.82 billion in 2015 to around $4.49 billion in 2019. This steady growth reflects increasing short-term obligations potentially linked to operational or financing activities.

Reported Current Ratio

The reported current ratio, a measure of short-term liquidity, exhibits fluctuation over the period. It peaks at 1.75 in 2016, indicating stronger liquidity, then declines notably to 1.2 in 2017. It partially recovers to 1.36 in 2018 before decreasing again to 1.18 in 2019. The overall decline from 2016 to 2019 indicates a weakening liquidity position relative to current liabilities.

Adjusted Current Assets and Adjusted Current Ratio

Adjusted current assets mirror the trend of current assets, with values closely aligned, except for a minor difference in 2015 and 2016. The adjusted current ratio follows the same pattern as the reported current ratio, starting at 1.34 in 2015, peaking at 1.67 in 2016, and declining to 1.18 in 2019. This suggests that adjustments made to current assets do not significantly alter the overall liquidity trend.

In summary, while current assets have grown notably, current liabilities have increased at a considerable pace as well, resulting in a decline in liquidity ratios after 2016. This declining trend in liquidity ratios may indicate increasing pressure on the company's ability to cover short-term obligations with its short-term assets, highlighting a potential area for financial management focus going forward.

The financial data reveals several key trends regarding the company's capital structure and leverage over the five-year period ending in 2019.

Total Debt

Total debt shows a clear declining trend, decreasing from approximately $6.66 billion in 2015 to around $5.18 billion in 2019. This represents a significant reduction in the company's absolute debt level over this timeframe.

Stockholders’ Equity

Stockholders’ equity consistently increased each year, starting from about $12.94 billion in 2015 and rising steadily to approximately $21.64 billion by the end of 2019. This growth signifies strengthening of the company’s equity base and potentially retained earnings or capital infusions.

Reported Debt to Equity Ratio

The reported debt to equity ratio declined from 0.51 in 2015 to 0.24 in 2019, reflecting a marked decrease in financial leverage. This declining ratio suggests a shift toward a more equity-financed capital structure, implying lower relative financial risk.

Adjusted Total Debt and Adjusted Stockholders’ Equity

Adjusted total debt figures, which likely account for off-balance sheet items or other financial adjustments, follow a similar downward trend as total debt, dropping from about $7.02 billion to approximately $5.97 billion over the same period. Adjusted stockholders’ equity, meanwhile, increased from $17.38 billion to $26.68 billion, consistent with the trend in reported equity.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio also decreased steadily from 0.40 in 2015 to 0.22 in 2019. This trend reinforces the observation of declining leverage, even when considering the adjusted financial figures.

Overall, the data illustrates a company progressively reducing its reliance on debt financing while building equity. This deleveraging trend contributes to a stronger and more stable financial position, potentially enhancing creditworthiness and reducing financial risk. The consistent growth in equity alongside shrinking debt levels reflects prudent financial management and improved capitalization throughout the five-year span.

Total Debt

The total debt exhibits a declining trend over the five-year period. Starting at approximately $6.66 billion in 2015, it peaked slightly in 2016 at nearly $7.0 billion but then consistently decreased to about $5.18 billion by 2019. This trend indicates a strategic reduction in debt obligations.

Total Capital

Total capital shows a steady increase throughout the same timeframe. Beginning at roughly $19.6 billion in 2015, it rose annually to reach approximately $26.8 billion in 2019. This growth suggests expansion and increased investment in the company's capital structure.

Reported Debt to Capital Ratio

The reported debt-to-capital ratio demonstrates a clear downward trajectory, declining from 0.34 in 2015 to 0.19 in 2019. This decreasing ratio reflects an improving capital structure with a lower proportion of debt relative to total capital over time.

Adjusted Total Debt

Adjusted total debt, which may account for additional liabilities or off-balance sheet items, follows a similar pattern to reported total debt. It starts near $7.02 billion in 2015, peaks in 2016 at approximately $7.31 billion, and then decreases steadily each year, reaching about $5.97 billion in 2019. This suggests cautious management of total debt exposure.

Adjusted Total Capital

Adjusted total capital also rises consistently from roughly $24.4 billion in 2015 to $32.7 billion in 2019. This steady increase indicates overall capital growth, possibly including equity and other adjustments beyond reported figures.

Adjusted Debt to Capital Ratio

The adjusted debt-to-capital ratio decreases from 0.29 in 2015 to 0.18 in 2019, mirroring the trend observed in reported ratios. This improvement points to enhanced financial leverage and reduced dependence on debt financing after adjustments are considered.

The analysis of the financial data over the five-year period reveals several notable trends in the company's asset base, equity position, and financial leverage.

Total Assets

Total assets showed a consistent increase year over year, rising from approximately $26.98 billion in 2015 to about $37.12 billion in 2019. This represents a steady expansion of the company's asset base, indicating growth and possibly increased investment in operational capacity or acquisitions.

Stockholders’ Equity

Stockholders' equity similarly followed an upward trajectory, growing from approximately $12.94 billion in 2015 to roughly $21.64 billion in 2019. The growth in equity outpaced the growth in total assets proportionally, reflecting strengthened shareholder value and retained earnings accumulation.

Reported Financial Leverage

The reported financial leverage ratio decreased gradually from 2.08 in 2015 to 1.72 in 2019. This downward trend suggests a reduction in reliance on debt relative to equity, improving the company’s capital structure and potentially lowering financial risk.

Adjusted Total Assets

The adjusted total assets closely paralleled the total assets trends, beginning at approximately $27.18 billion in 2015 and increasing to about $37.12 billion by 2019. The similarity in values between adjusted and unadjusted figures indicates minimal impact from adjustments over the period.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity also exhibited consistent growth, increasing from around $17.38 billion in 2015 to approximately $26.68 billion in 2019. The adjustments resulted in higher equity values compared to reported figures, highlighting perhaps revaluations or accounting treatments that enhance the equity base.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased from 1.56 in 2015 to 1.39 in 2019, mirroring the trend in reported leverage but reflecting a generally lower leverage level due to the adjustments made. The steady decrease indicates ongoing efforts or outcomes of deleveraging and capital strengthening initiatives.

Overall, the financial data indicates a positive financial trajectory characterized by asset growth, equity strengthening, and decreasing financial leverage, suggesting improved financial stability and reduced risk exposure over the analyzed timeframe.

Net Income (Loss)

The net income (loss) experienced a significant improvement over the observed periods. Starting with a substantial loss of -4,524,515 thousand US dollars in 2015, the loss narrowed considerably to -1,096,686 thousand US dollars in 2016. Subsequently, the company shifted to profitability, achieving positive net income figures of 2,582,579 thousand US dollars in 2017, which further increased to 3,419,040 thousand US dollars in 2018 before a slight decline to 2,734,910 thousand US dollars in 2019.

Operating Revenues and Other

Operating revenues and other income displayed a general upward trajectory during the period. Revenues declined from 8,757,428 thousand US dollars in 2015 to 7,650,632 thousand US dollars in 2016 but then increased substantially to reach 11,208,320 thousand US dollars in 2017. The growth continued with a sharp rise to 17,275,399 thousand US dollars in 2018, followed by a marginal increase to 17,379,973 thousand US dollars in 2019.

Reported Net Profit Margin

The reported net profit margin mirrored the trends observed in net income. It started with a highly negative margin of -51.66% in 2015, improving to -14.33% in 2016. The margin turned positive at 23.04% in 2017, then decreased somewhat to 19.79% in 2018 and further to 15.74% in 2019, indicating stabilization at a lower profitability level compared to 2017.

Adjusted Net Income (Loss)

Adjusted net income demonstrated a pattern similar to net income but with greater volatility. The losses were more pronounced at -7,017,104 thousand US dollars in 2015 and -1,597,564 thousand US dollars in 2016. The company achieved a positive adjusted net income of 595,016 thousand US dollars in 2017, followed by a substantial increase to 4,480,127 thousand US dollars in 2018. This figure declined to 3,601,719 thousand US dollars in 2019, suggesting some fluctuation in adjusted profitability.

Adjusted Net Profit Margin

The adjusted net profit margin reflected a similar improvement trend from a very negative -80.13% in 2015 to -20.88% in 2016. It crossed into positive territory at 5.31% in 2017 and increased sharply to 25.93% in 2018. The margin then declined to 20.72% in 2019, indicating a peak in adjusted profitability in 2018 followed by a reduction, yet remaining at a relatively strong level.

The financial data reveals significant variability in profitability and equity trends over the five-year period. The company experienced substantial losses in the early years, transitioning to solid profitability in later periods. Shareholders' equity consistently increased year over year, indicating a strengthening capital base despite fluctuations in earnings.

Net Income (Loss)

The net income showed a marked improvement from a loss of approximately -4.52 billion USD in 2015 to positive earnings of 2.73 billion USD by 2019. This recovery was progressive, with a notable shift in 2017 when income turned positive at around 2.58 billion USD and peaked in 2018 at approximately 3.42 billion USD before slightly declining in 2019.

Stockholders’ Equity

There was a steady increase in stockholders’ equity, growing nearly 67% over the five-year span from about 12.94 billion USD in 2015 to 21.64 billion USD in 2019. This consistent rise reflects accumulation of retained earnings and possibly other equity enhancements.

Reported Return on Equity (ROE)

ROE improved significantly, starting at a negative -34.96% in 2015 and reaching a positive 12.64% by 2019. The sharp upward movement corresponds with the shift from net losses to net gains, peaking in 2018 at 17.66% before a moderated decline in the final year observed.

Adjusted Net Income (Loss)

The adjusted figures similarly demonstrate a turnaround, with losses narrowing from -7.02 billion USD in 2015 to positive adjusted net incomes in 2017 onward. Adjusted income peaked in 2018 at roughly 4.48 billion USD, declining somewhat to 3.60 billion USD in 2019, paralleling the trend observed in reported net income.

Adjusted Stockholders’ Equity

The adjusted equity amounts were consistently higher than reported equity figures, suggesting inclusion of additional capital or adjustments. This measure increased steadily from about 17.38 billion USD in 2015 to 26.68 billion USD in 2019, surpassing growth in reported equity and indicating an expanding asset or capital base under adjusted accounting.

Adjusted Return on Equity (ROE)

Adjusted ROE mimicked the overall upward trend seen in reported ROE but with less volatility. Starting from a negative -40.38% in 2015, it reached a positive 13.5% in 2019 after a peak of 18.84% in 2018. The more conservative approach in adjusted data reflects a smoothing of earnings impacts.

Overall, the data shows a clear recovery from significant losses to profitability, supported by growing equity and improving returns on equity metrics. The adjusted figures corroborate these positive trends, providing a refined view of the company’s financial performance and strength over the analyzed period.

The financial data presents several key performance indicators over a five-year period, highlighting notable trends in profitability, asset growth, and returns.

Net Income (Loss)

There was a significant improvement in net income from a substantial loss of approximately $4.5 billion in 2015 to a positive figure exceeding $2.7 billion by 2019. The losses sharply decreased between 2015 and 2016, followed by a recovery to positive earnings in 2017, peaking in 2018, and slightly declining in 2019.

Total Assets

Total assets demonstrated consistent growth throughout the period, increasing from around $27 billion in 2015 to over $37 billion in 2019. This steady asset expansion may indicate ongoing investment or acquisition strategies leading to an enlarged asset base.

Reported Return on Assets (ROA)

The reported ROA shifted from a negative value of -16.77% in 2015 to a positive and relatively stable range between 7.37% and 10.08% from 2017 onward. The increasing ROA suggests improved efficiency in utilizing assets to generate earnings, although a slight decline is observed in 2019 compared to the prior year.

Adjusted Net Income (Loss)

Adjusted net income figures exhibit a pattern similar to the reported net income but with higher volatility. The company had more pronounced losses in 2015 and 2016 on an adjusted basis, followed by a rise to positive adjusted earnings in 2017. The peak adjusted net income was in 2018, with a modest reduction in 2019. These variations might reflect the impact of non-recurring or extraordinary items excluded in the adjusted figures.

Adjusted Total Assets

Adjusted total assets closely align with reported total assets, showing steady growth each year. The increase from approximately $27.2 billion in 2015 to about $37.1 billion in 2019 indicates consistent asset accumulation when adjusted for any relevant factors.

Adjusted Return on Assets (ROA)

The adjusted ROA improved markedly from a deeply negative -25.81% in 2015 to positive territory from 2017 onwards, reaching a peak of 13.01% in 2018 before decreasing to 9.7% in 2019. This trend highlights a strong turnaround and efficient asset utilization when factoring out extraordinary items, although the decrease in the final year suggests some moderation in profitability.

Overall, the data indicates a recovery phase characterized by improving profitability and asset efficiency from 2015 through 2019. While asset growth remained consistent, profitability metrics experienced significant improvement after initial losses, with some signs of stabilization or slight decline in the most recent year presented.