Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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Solvency Ratios (Summary)
EOG Resources Inc., solvency 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
- Debt to Equity
- The debt to equity ratio demonstrated an initial upward trend from 0.39 at the end of Q1 2015, peaking around 0.59 in Q3 2016, reflecting increased reliance on debt financing relative to equity during this period. Subsequently, this ratio showed a steady decline, reaching 0.24 by Q4 2019, indicating a reduction in leverage and possibly an improvement in financial structure or equity growth over time.
- Debt to Equity (Including Operating Lease Liability)
- This metric closely mirrored the standard debt to equity ratio, with minor variations in the later periods. It peaked similarly around Q3 2016 at 0.59 and then decreased consistently to 0.26 by the end of 2019, suggesting that operating lease obligations did not significantly alter the overall leverage profile but slightly moderated the decline in leverage towards the end of the period analyzed.
- Debt to Capital
- The debt to capital ratio increased from 0.28 in Q1 2015 to a high of 0.37 in the middle of 2016, following a pattern akin to the debt to equity ratios. From there, it trended downward, reaching 0.19 by Q4 2019. This decline indicates an improving capital structure with a decreased proportion of debt relative to total capital invested.
- Debt to Capital (Including Operating Lease Liability)
- This ratio exhibited similar behavior to the debt to capital measure without lease liabilities, with a peak in mid-2016 and subsequent decline through to the end of 2019. The inclusion of operating lease liabilities resulted in marginally higher ratios in certain quarters but followed the same overall downward trend, showing consistent deleveraging despite adjusted debt considerations.
- Debt to Assets
- The debt to assets ratio increased gently from 0.20 in Q1 2015 to approximately 0.27 by mid-2016 before declining steadily to 0.14 by Q4 2019. This pattern suggests that while liabilities increased relative to assets initially, the company reduced liabilities or grew asset bases substantially in the later periods, improving solvency.
- Debt to Assets (Including Operating Lease Liability)
- The trend including operating lease liabilities mirrored the debt to assets ratio with slightly elevated numbers in later quarters. The ratio rose to a peak of 0.27 in mid-2016 and then decreased to 0.15 by the fourth quarter of 2019. This indicates that operating lease obligations represent a modest debt component but the overall asset coverage remained solid and improving over time.
- Financial Leverage
- Financial leverage measured as total assets to equity rose from 1.99 in early 2015 to a peak of 2.17 in Q3 2016, reflecting an increase in asset base relative to equity. Following this, there was a notable decrease to about 1.72 by Q4 2019, suggesting the company reduced dependency on leverage or increased equity values, supporting a stronger financial position.
- Interest Coverage
- Interest coverage ratios were extremely weak and negative during 2015 and early 2016, with values as low as approximately -28, indicating that earnings were insufficient to cover interest expenses and pointing to financial distress or operational losses. From mid-2017 onward, there was a marked improvement, with ratios moving into positive territory and rising gradually to over 20 by the end of 2019. This improvement denotes enhanced earnings relative to interest obligations and stronger profitability and creditworthiness.
Debt Ratios
Coverage Ratios
Debt to Equity
EOG Resources Inc., debt to equity 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt demonstrates a fluctuating trend over the presented periods. Initially, there was a slight decline from 6.90 billion to approximately 6.40 billion between the first two quarters of 2015, followed by a modest increase toward the end of 2015, peaking near 7.00 billion in early 2016. From mid-2016 through early 2017, the total debt remained relatively stable, hovering around 6.98 billion to 6.39 billion. Subsequently, a gradual decrease is observed starting from 2017, with a notable reduction taking place during 2018 and continuing into 2019, reaching approximately 5.18 billion by the end of 2019, indicating a consistent effort to reduce overall debt.
- Stockholders’ Equity
- Stockholders’ equity shows a declining phase during much of 2015 and 2016, dropping from about 17.47 billion at the start of 2015 to a low near 11.80 billion by late 2016. Following this period, a significant recovery and growth trend emerges starting in late 2016 and continuing through the end of 2019. Equity grows steadily, reaching over 21.64 billion by the final quarter in 2019. This consistent increase in equity over three years signals strengthening financial stability and an improving capital base.
- Debt to Equity Ratio
- The debt to equity ratio reflects the interplay between total debt and equity trends. Beginning at 0.39 in early 2015, the ratio rose steadily to peak at 0.59 in late 2016, indicating a period where debt was increasing relative to equity, consistent with the rising debt and declining equity in this timeframe. After this peak, the ratio demonstrates a clear downward trend, dropping steadily from 0.59 in late 2016 to 0.24 by the end of 2019. This decline highlights a significant improvement in the company's leverage position, driven by the combination of decreasing debt levels and rising equity, suggesting enhanced financial health and reduced risk exposure over the latter periods.
Debt to Equity (including Operating Lease Liability)
EOG Resources Inc., debt to equity (including operating lease liability) 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Current portion of operating lease liabilities | ||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends regarding the company's debt, equity, and leverage over the five-year quarterly period.
- Total Debt (including operating lease liability)
- The total debt level showed fluctuations over the timeline. Initially, the debt decreased moderately from approximately 6.9 billion USD at the end of Q1 2015 to around 6.4 billion USD by Q2 2015, followed by a relatively stable range until the end of 2015. Through 2016, the debt remained around 6.9 billion USD consistently. However, starting in 2017, there was a noticeable decline particularly in the latter half of that year, dropping below 6.4 billion USD, and this downward trend continued into 2018 and 2019. By the end of 2019, total debt was reduced to approximately 5.5 billion USD, the lowest in the observed period, demonstrating a strategic deleveraging or repayment of liabilities.
- Stockholders’ Equity
- Stockholders' equity exhibited a generally positive trend over the analyzed timeframe. There was a significant decrease from approximately 17.5 billion USD at the beginning of 2015 to about 12.4 billion USD by early 2016, indicating potential adverse events affecting equity or accumulated losses. Subsequently, equity gradually recovered and increased, reaching nearly 14 billion USD by the end of 2016. A steady upward momentum continued with equity rising from around 14 billion USD at the end of 2016 to more than 21.6 billion USD by the close of 2019. This consistent rise suggests reinvestment of earnings, retained profits, or equity issuances contributing to the strengthening of the company’s capital base.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio illustrates the company’s leverage position relative to its equity. At the beginning of 2015, the ratio was low at 0.39 but increased to over 0.56 during 2016, indicating increased leverage. Subsequently, the ratio declined steadily from late 2016 through 2019, falling to 0.26 by the end of 2019. This reduction reflects both the decreasing debt levels and increasing equity, signaling an overall improvement in financial stability and potentially a stronger capacity to meet debt obligations through equity backing. The lowest leverage ratio toward the end of the period suggests a more conservative financial structure.
In summary, over the examined period, the company has reduced its total debt significantly while simultaneously growing its equity base. This has resulted in a marked reduction in the debt-to-equity ratio, pointing to improved financial health and reduced financial risk. The trends imply deliberate efforts to strengthen the balance sheet, possibly responding to previous periods of elevated leverage and lower equity.
Debt to Capital
EOG Resources Inc., debt to capital 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the twenty-quarter period reveals several notable trends in debt management and capital structure.
- Total Debt
- The total debt initially showed a decline from approximately $6.9 billion at the end of the first quarter of 2015 to about $6.4 billion by mid-2015. Following this, debt levels fluctuated slightly but remained close to the $6.9 billion mark throughout 2015 and into early 2016. From mid-2016 onward, there is a gradual downward trend, reaching roughly $6.1 billion by the end of 2018. A more significant reduction in total debt is observed in 2019, with the figure declining to about $5.2 billion by the end of that year.
- Total Capital
- Total capital demonstrates more fluctuation over the periods. Starting at roughly $24.4 billion at the beginning of 2015, capital declined sharply to under $20 billion by the end of that year and continued a generally downward trajectory into 2016, dipping below $19 billion mid-year. From late 2016, capital recovers and increases steadily, surpassing $25 billion by the end of 2018 and maintaining a high level into 2019, peaking near $26.8 billion at year-end.
- Debt to Capital Ratio
- This ratio follows the movements in debt and capital, starting at 0.28 in early 2015 and increasing steadily to a peak of 0.37 by mid-2016, indicating a higher proportion of debt relative to capital during that period. Following this peak, the ratio declines consistently, falling to 0.28 by the end of 2017, and continues to drop to a low of 0.19 by the end of 2019. The downward trend in the debt to capital ratio suggests an improvement in the capital structure, with a reduced reliance on debt financing throughout the latter part of the observed timeframe.
Overall, the data indicate a strategic reduction in total debt coupled with growth or stabilization in total capital, leading to a healthier balance sheet characterized by a lower leverage ratio by the end of 2019. This suggests improved financial robustness and potentially an enhanced capacity for sustainable growth or investment.
Debt to Capital (including Operating Lease Liability)
EOG Resources Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Current portion of operating lease liabilities | ||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||
| Total capital (including operating lease liability) | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's leverage and capital structure over the observed time frame.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited fluctuations throughout the periods. Initially, it decreased from approximately $6.9 billion at the end of Q1 2015 to around $6.4 billion in mid-2015. Subsequently, the debt levels remained relatively stable around $6.9 billion through 2016 and early 2017. From late 2017 to early 2018, a notable decline in debt is observed, reducing from approximately $6.4 billion to about $6.1 billion by early 2019. Finally, the debt further declined to roughly $5.5 billion towards the end of 2019, indicating a consistent deleveraging trend in the latter part of the period.
- Total Capital (Including Operating Lease Liability)
- The total capital experienced an overall upward trend, despite some variances. Initially, capital slightly declined from around $24.4 billion in Q1 2015 to roughly $19.6 billion by late 2015. Following this period, total capital began rising steadily, reaching approximately $25.5 billion by early 2019 and continuing an upward trajectory to nearly $27.2 billion at the end of 2019. This growth suggests increased equity or other capital inflows counterbalancing the shifts in debt levels.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio revealed meaningful improvements in financial leverage over the period. Starting at 0.28 in early 2015, the ratio peaked at 0.37 during 2016, reflecting higher reliance on debt. After this peak, the ratio progressively declined, reflecting reduced relative debt exposure. By early 2018, the ratio stood at approximately 0.28 and continued to decrease steadily, reaching 0.20 by the end of 2019. This notable reduction indicates strengthened financial stability and a more conservative capital structure.
Overall, the company's financial data over the analyzed quarters illustrates a strategic reduction in debt relative to overall capital. While debt levels were maintained or modestly adjusted in the early part of the period, the latter years show both a reduction in absolute debt and growth in capital, culminating in a lower debt to capital ratio. This trend aligns with improved leverage management and potentially enhanced creditworthiness or financial flexibility.
Debt to Assets
EOG Resources Inc., debt to assets calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
The total debt exhibits a fluctuating pattern over the observed periods. Initially, there is a decline from approximately 6.9 billion USD in March 2015 to around 6.4 billion USD in June 2015. This is followed by a general upward trend peaking at nearly 7.0 billion USD in the first quarter of 2016, maintaining a relatively stable level until the fourth quarter of 2016.
Subsequently, a notable decrease occurs from late 2016 through 2017, bringing total debt down to approximately 6.38 billion USD by the end of 2017. The downward trend continues into 2018 and 2019, with total debt reducing to about 5.18 billion USD by the end of 2019. This represents an overall reduction in debt levels in the latter years of the period analyzed.
- Total Assets
-
Total assets display a declining trend from approximately 34.7 billion USD in March 2015 to about 25.5 billion USD by the third quarter of 2016. However, starting in the fourth quarter of 2016, total assets begin to recover and show a steady upward movement.
From late 2016 through the end of 2019, assets increase consistently, reaching approximately 37.1 billion USD. This indicates a significant asset base growth following a period of contraction, with the values surpassing the initial levels recorded at the beginning of the data series.
- Debt to Assets Ratio
-
The debt to assets ratio begins at 0.20 in the first quarter of 2015 and rises to a peak of 0.27 during 2016, indicating an increase in leverage during this time frame. From the late 2016 period onward, the ratio declines progressively, suggesting a reduction in leverage relative to assets.
By the end of 2019, the ratio drops to 0.14, the lowest in the period reviewed, reflecting improved balance sheet strength with proportionally less debt burden relative to the company's asset base. Overall, this ratio trend illustrates a conservative shift in financial structure over time.
Debt to Assets (including Operating Lease Liability)
EOG Resources Inc., debt to assets (including operating lease liability) 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Current portion of long-term debt | ||||||||||||||||||||||||||
| Long-term debt, excluding current portion | ||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||
| Current portion of operating lease liabilities | ||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt level experienced fluctuations during the period from March 31, 2015, through December 31, 2019. Initially, total debt decreased from approximately $6.90 billion to around $6.40 billion by mid-2015. Thereafter, it remained relatively stable just below $7 billion through much of 2016 and early 2017, before a noticeable decline starting in mid-2017. From approximately $6.98 billion at the beginning of 2017, total debt steadily reduced to about $5.54 billion by the end of 2019. This indicates a concerted effort to reduce leverage during the latter half of the timeframe.
- Total Assets
- Total assets exhibited variability throughout the analyzed quarters. Beginning at roughly $34.7 billion at the end of Q1 2015, total assets decreased significantly, reaching a low near $25.5 billion in late 2016. From then on, a trend of asset growth is observable, with assets rising consistently through 2018 and 2019, reaching approximately $37.1 billion by Q4 2019. This pattern suggests a divestment or impairment of assets during 2015-2016, followed by reinvestment or accumulation of assets thereafter.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The leverage ratio, calculated as total debt over total assets, started relatively low at 0.20 in early 2015, increased to a peak of 0.27 during 2016, indicating higher financial leverage or declining asset base relative to debt. From late 2016 onwards, the ratio steadily declined, reaching 0.15 by the end of 2019. This decline reflects both the reduction in total debt and growth in asset base, signifying improved balance sheet strength and reduced relative indebtedness over the latter half of the examined period.
Financial Leverage
EOG Resources Inc., financial leverage calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
-
Total assets exhibit a general upward trend from March 31, 2015, through December 31, 2019. Initially, there is a decline from approximately 34.7 billion US dollars in early 2015 to around 25.5 billion US dollars by the third quarter of 2016. This decline is followed by a marked recovery and consistent growth, with total assets increasing steadily each quarter from late 2016 onward, culminating at approximately 37.1 billion US dollars at the end of 2019.
- Stockholders’ Equity
-
Stockholders' equity generally follows a similar pattern to total assets, with a decrease from about 17.5 billion US dollars in early 2015 to roughly 11.8 billion US dollars by the third quarter of 2016. From that point, equity shows a strong recovery and continuous growth, reaching approximately 21.6 billion US dollars by the end of 2019. The growth in equity post-2016 appears more pronounced and steady compared to the earlier decline, suggesting improved financial health or retained earnings accumulation during this period.
- Financial Leverage
-
The financial leverage ratio reflects the relationship between total assets and stockholders' equity. Initially, leverage hovers around a ratio of 2 at the start of 2015, fluctuating slightly but generally increasing to a peak of 2.17 by September 2016. Following this peak, there is a noticeable decline in leverage, reaching a low of approximately 1.72 by the end of 2019. This declining leverage trend indicates a reduction in reliance on debt financing relative to equity over the latter half of the period, implying strengthening equity positions relative to total assets.
- Summary Insights
-
The data delineates a phase of contraction in both total assets and stockholders' equity from early 2015 through mid-2016, likely indicative of asset disposals or valuation decreases during that timeframe. Subsequently, both metrics demonstrate a recovery phase with consistent growth, suggesting reinvestment or appreciation in asset base and capitalization. The concurrent decline in financial leverage after 2016 suggests a strategic move towards more conservative capitalization or improved equity financing, enhancing the company’s balance sheet stability. Overall, the financial data reflects an initial period of contraction followed by a sustained recovery and strengthening of the company’s financial position through the end of 2019.
Interest Coverage
EOG Resources Inc., interest coverage 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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | |||||||
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| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||
| Add: Interest expense, net | ||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Q4 2019 Calculation
Interest coverage
= (EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019
+ EBITQ1 2019)
÷ (Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019
+ Interest expenseQ1 2019)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT figures exhibit significant volatility in the early periods from March 2015 through December 2016, with losses reaching extreme lows such as -6.21 billion US$ in the third quarter of 2015. From 2017 onwards, there is a marked positive turnaround with EBIT transitioning to consistent positive values. The upward trend continues, peaking in the fourth quarter of 2018 at approximately 1.51 billion US$, followed by a slight decline but overall maintaining a positive and relatively high level through 2019.
- Interest expense, net
- Net interest expense remains relatively stable across the entire time frame, fluctuating moderately between a low of about 39.6 million US$ in the fourth quarter of 2019 and a high of approximately 71.3 million US$ in late 2016. There is a slight downward trend in interest expenses observed beginning in late 2017 through 2019.
- Interest coverage ratio
- The interest coverage ratio starts in negative territory with extreme negative values around -28 in 2015 and early 2016, indicating EBIT was insufficient to cover interest expenses comfortably. The ratio improves gradually starting in late 2016, moving towards positive territory by the last quarter of 2017. A continuous upward trend is noted through 2018 and 2019, reaching above 20 times in some quarters, reflecting an improving ability to meet interest obligations comfortably from earnings.