Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Paying user area
Try for free
EOG Resources Inc. pages available for free this week:
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to EOG Resources Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Liquidity Ratios (Summary)
EOG Resources Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
- Current Ratio
- The current ratio exhibited a generally declining trend from the first quarter of 2016 through mid-2018, decreasing from 1.53 to a low of 0.98 by June 2018. This indicates a reduction in the company's short-term liquidity during this period. However, from mid-2018 onward, the ratio showed a moderate recovery, rising gradually to 1.18 by the end of 2019. Despite this recovery, the current ratio remained below the initial levels observed in early 2016, suggesting a more cautious or constrained liquidity position in recent periods.
- Quick Ratio
- The quick ratio initially increased from 0.94 in the first quarter of 2016 to a peak of 1.39 by the end of 2016, reflecting an enhanced ability to cover immediate liabilities without relying on inventory. Subsequently, a noticeable decline occurred starting in 2017, with the ratio falling to as low as 0.68 by mid-2018. After this trough, the quick ratio experienced a partial rebound, ending at 0.90 in the last quarter of 2019. Overall, this pattern suggests fluctuations in the company's most liquid assets, with a significant contraction after 2016 followed by stabilization near the end of the data period.
- Cash Ratio
- The cash ratio showed an upward trajectory during 2016, increasing from 0.43 in the first quarter to 0.79 by year-end, indicating progressively stronger cash reserves relative to current liabilities. However, starting in 2017, the cash ratio declined significantly, reaching a low of 0.23 in the second quarter of 2018. A recovery phase began thereafter, with the ratio climbing back to 0.45 by the end of 2019. This suggests a strategic adjustment in cash holdings, with early accumulation of cash resources transitioning into reduced cash liquidity through 2017 and early 2018, followed by recovery efforts toward the end of the period.
Current Ratio
EOG Resources Inc., current ratio calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current assets | |||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in current assets, current liabilities, and the current ratio over the observed periods.
- Current Assets
- Current assets exhibit a generally upward trend from March 31, 2016, through December 31, 2019. Starting at approximately $2.37 billion, they increased steadily to over $5.27 billion by the end of 2019. Significant growth phases are observed particularly from mid-2017 onwards, with occasional fluctuations, but the overall trajectory indicates consistent accumulation of short-term resources.
- Current Liabilities
- Current liabilities also increased substantially over the same period. Beginning near $1.55 billion, liabilities grew to roughly $4.49 billion by December 2019. There is a marked increase starting in early 2018, with liabilities peaking around mid-2018 before experiencing some variability but remaining elevated through the end of 2019. The rise in liabilities generally parallels that of current assets, suggesting increased short-term obligations accompanying asset growth.
- Current Ratio
- The current ratio, representing liquidity, shows variability, with periods of strength and weakness. Initially, the ratio was above 1.5 in early 2016, reaching a peak near 1.75 at the end of that year. However, it declined through 2017, hitting a low point below 1.2 towards the end of that year. In 2018, the ratio dipped below 1.0 temporarily, indicating potential liquidity concerns during that quarter, before recovering to above 1.3 by year-end. Subsequently, the ratio trended around 1.0 to 1.2 from 2019 onwards, reflecting a tightened liquidity position relative to earlier years, though maintaining a level above 1.0 suggests the ability to cover current liabilities with current assets remains intact.
In summary, the company has expanded its current asset base significantly over the analyzed period while incurring a commensurate increase in current liabilities. The liquidity ratio's fluctuations suggest varying degrees of short-term financial flexibility, with a notable dip in mid-2018 but relative stability thereafter. The data points to an overall growth in operational scale alongside careful management of liquidity risk.
Quick Ratio
EOG Resources Inc., quick ratio calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Quick Assets Trend
- The total quick assets showed a generally increasing trend over the analyzed periods from March 2016 to December 2019. Starting at approximately $1.45 billion, the quick assets increased steadily, reaching a peak around $3.47 billion in December 2018. Although there was a slight dip after that peak, quick assets rose again toward the end of 2019, reaching approximately $4.03 billion. This indicates an overall improvement in the company's liquid asset base over time.
- Current Liabilities Trend
- Current liabilities also increased substantially throughout the period, beginning close to $1.55 billion in March 2016 and almost tripling to reach around $4.49 billion by December 2019. Notably, there were periods of sharper increases, such as between June 2017 and June 2018. The growth in current liabilities outpaced the growth in quick assets, especially in the later periods, which may suggest increased short-term obligations or borrowing.
- Quick Ratio Analysis
- The quick ratio showed considerable fluctuation over the quarters. It started below 1 (0.94) in March 2016, improved to a high of 1.39 by December 2016, indicating strong short-term liquidity at that time. However, after this peak, the quick ratio experienced a general decline, falling below 1 starting from mid-2017 and reaching its lowest point at 0.68 in June 2018. Although there was some recovery afterward, the ratio mostly remained below 1 through to December 2019, ending at 0.9. This suggests that despite higher liquid assets, the company's current liabilities grew at a rate that outpaced quick assets, potentially exerting pressure on short-term liquidity.
- Overall Insights
- Despite the growth in liquid assets, the increasing current liabilities and the resulting pressure on the quick ratio indicate a cautious stance on short-term financial health. The peaks and troughs in the quick ratio may reflect changing operational or financing strategies, with recent trends showing a relatively tight liquidity position. Continued monitoring of this ratio alongside the absolute values of quick assets and current liabilities is advisable for assessing ongoing liquidity risk.
Cash Ratio
EOG Resources Inc., cash ratio calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
| Exxon Mobil Corp. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q4 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the liquidity position and current liabilities over the examined periods.
- Total Cash Assets
- Total cash assets exhibit overall growth with some fluctuations. From March 31, 2016, to December 31, 2016, there is a consistent upward trajectory, increasing from approximately 668 million USD to nearly 1.6 billion USD. In 2017, cash assets started at around 1.55 billion USD and displayed volatility, dropping sharply in the third and fourth quarters to approximately 834 million USD. However, from 2018 onward, cash assets generally increased again, reaching a peak of about 2.03 billion USD by the end of 2019. This indicates periods of cash accumulation interspersed with phases of significant reduction, possibly due to operational or investment activities.
- Current Liabilities
- Current liabilities also show an upward trend over time, with some intermittent spikes. Starting at approximately 1.55 billion USD in the first quarter of 2016, liabilities increased steadily, reaching over 2 billion USD by the end of 2016. A notable rise is observed in mid-2017 and again in 2018, where liabilities moved from about 2.7 billion USD to over 4.4 billion USD by mid-2019. In the fourth quarter of 2019, current liabilities stabilized near 4.49 billion USD. The escalating current liabilities suggest increased short-term obligations and potentially greater operational or financing activity requiring liquidity management attention.
- Cash Ratio
- The cash ratio, reflecting the ability to cover current liabilities with cash assets, shows a declining trend from 2016 through much of 2018, indicating a relative decrease in liquidity. It dropped from 0.43 in the first quarter of 2016 to a low of 0.23 in the second quarter of 2018. Following this trough, the ratio improved, increasing to 0.45 by the end of 2019. The low points correlate with periods of rising current liabilities and fluctuating cash assets, suggesting some periods of tighter liquidity. The recovery toward the end of the dataset implies improved cash coverage relative to liabilities, reflecting strengthening short-term financial stability.
In summary, the data show growth in both cash assets and current liabilities, with current liabilities rising at a faster pace, leading to periods of decreased liquidity as measured by the cash ratio. However, after reaching a low point in mid-2018, liquidity indicators improved gradually through 2019, implying a potential strategic emphasis on enhancing short-term financial resilience.