Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Long-term Activity Ratios (Summary)
EOG Resources Inc., long-term (investment) activity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a fluctuating trend over the five-year period. Initially, it decreased from 0.36 in 2015 to 0.30 in 2016. This was followed by a significant increase to 0.44 in 2017 and a further rise to 0.62 in 2018, before slightly declining to 0.57 in 2019. The variation indicates periods of improved efficiency in utilizing fixed assets, particularly notable in 2017 and 2018.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The inclusion of operating leases and right-of-use assets did not materially alter the net fixed asset turnover ratio trends, as values closely mirror those of the net fixed asset turnover alone. This suggests that the impact of right-of-use assets on asset utilization is minimal or stable over the observed years.
- Total Asset Turnover
- Total asset turnover followed a similar pattern to fixed asset turnover, starting at 0.32 in 2015 and declining to 0.26 in 2016. Subsequently, it rose consistently, reaching a peak of 0.51 in 2018 before decreasing to 0.47 in 2019. The overall trend reflects an improving ability to generate sales from total assets, with a peak in 2018 signaling maximum operational efficiency, followed by a slight reduction in 2019.
- Equity Turnover
- The equity turnover ratio demonstrated more pronounced fluctuations across the period. It declined from 0.68 in 2015 to 0.55 in 2016, then increased sharply to 0.69 in 2017 and further climbed to 0.89 in 2018. In 2019, it decreased marginally to 0.80. These changes indicate varying effectiveness in leveraging shareholder equity to generate revenue, with the highest efficiency observed in 2018.
Net Fixed Asset Turnover
EOG Resources Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating revenues and other | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Net fixed asset turnover = Operating revenues and other ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues and Other
- The operating revenues exhibited a fluctuating but overall upward trend over the five-year period. Starting at approximately 8.76 billion USD in 2015, revenues decreased to around 7.65 billion USD in 2016, indicating a temporary decline. From 2017 onward, a substantial increase is observed, peaking at about 17.38 billion USD in 2019. This represents almost a doubling of revenues from 2015 to 2019.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment showed consistent growth each year. Beginning at approximately 24.21 billion USD in 2015, the value increased steadily to reach around 30.36 billion USD by 2019. This continuous rise indicates ongoing investments or capital expenditures in fixed assets.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate revenues, displayed variability across the years. It started at 0.36 in 2015 and declined to 0.30 in 2016, reflecting a less efficient use of assets during the revenue dip. Subsequently, the ratio improved significantly, reaching a peak of 0.62 in 2018, before slightly decreasing to 0.57 in 2019. This pattern suggests enhancements in asset utilization efficiency following the initial decline and revenue growth period.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
EOG Resources Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating revenues and other | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease ROU assets (located in Other assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Operating revenues and other ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
An analysis of the financial data over the five-year period from 2015 to 2019 reveals several notable trends in operational performance and asset management.
- Operating Revenues and Other
- Annual operating revenues exhibit fluctuations with an initial decline from 8.76 billion in 2015 to 7.65 billion in 2016, followed by a significant increase to 11.21 billion in 2017. This growth trend continued sharply in 2018, reaching 17.28 billion, and then stabilized in 2019 at approximately 17.38 billion. The data suggests a period of recovery and expansion after 2016, with revenue growth plateauing towards the end of the period.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment, including operating leases and right-of-use assets, shows a consistent increase year-over-year. Starting at 24.21 billion in 2015, this asset base expanded each year to reach over 31.14 billion by 2019. This trend indicates ongoing investment or capital expenditure aimed at expanding or maintaining the company's asset infrastructure.
- Net Fixed Asset Turnover
- This ratio, measuring efficiency in generating revenue from fixed assets, declined from 0.36 in 2015 to 0.30 in 2016, coinciding with the revenue drop. Thereafter, it improved substantially to 0.44 in 2017 and peaked at 0.62 in 2018, reflecting enhanced asset utilization. However, in 2019, the ratio slightly decreased to 0.56, suggesting a minor reduction in efficiency or a lag in revenue growth relative to asset expansion.
Overall, the data indicates a phase of contraction in 2016, followed by significant growth in revenue and asset base through 2018, with a slight moderation in efficiency ratios in the final year of the period. The company's investments into fixed assets appear aligned with revenue growth, though the slight dip in turnover ratio during 2019 may warrant further investigation into asset use or market conditions.
Total Asset Turnover
EOG Resources Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating revenues and other | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Total asset turnover = Operating revenues and other ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals notable trends over the five-year period ending in 2019. Operating revenues and other income demonstrate considerable fluctuations and an overall upward trajectory. After a decrease from 8.76 billion USD in 2015 to 7.65 billion USD in 2016, revenues increased markedly to 11.21 billion USD in 2017, followed by significant growth reaching nearly 17.28 billion USD in 2018 and stabilizing around 17.38 billion USD in 2019.
Total assets showed a consistent increase each year, rising from approximately 27.0 billion USD in 2015 to about 37.1 billion USD in 2019. This steady asset growth suggests ongoing investment or acquisition activity contributing to the expansion of the company’s asset base over the analyzed period.
The total asset turnover ratio, which measures the efficiency in using assets to generate revenue, experienced a decline from 0.32 in 2015 to 0.26 in 2016, indicating reduced asset efficiency. This parameter then improved significantly, reaching 0.38 in 2017 and peaking at 0.51 in 2018, showing enhanced utilization of assets to produce revenue. A slight decrease to 0.47 in 2019 still reflects relatively strong asset efficiency compared to earlier years.
- Operating Revenues and Other
- Initial decrease in 2016 followed by substantial growth through 2018, stabilizing in 2019.
- Total Assets
- Consistent year-over-year increase, indicating expansion of asset base.
- Total Asset Turnover
- Declined in 2016 but improved markedly afterward, peaking in 2018 and slightly decreasing in 2019, reflecting changing efficiency in asset utilization.
Equity Turnover
EOG Resources Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating revenues and other | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Equity turnover = Operating revenues and other ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Operating Revenues and Other
- Operating revenues demonstrated a fluctuating but generally upward trend over the five-year period. The figure decreased from approximately 8.76 billion in 2015 to around 7.65 billion in 2016, indicating a decline. Subsequently, a significant increase occurred in 2017, reaching over 11.2 billion. This positive momentum continued sharply into 2018, with revenues peaking near 17.3 billion, and stabilized in 2019, with a slight increase to approximately 17.4 billion.
- Stockholders' Equity
- Stockholders’ equity showed a consistent and steady increase from 2015 to 2019. Starting at about 12.94 billion in 2015, it rose annually, reaching approximately 21.64 billion by the end of 2019. The growth reflects a solid capital base expansion over these years.
- Equity Turnover Ratio
- The equity turnover ratio displayed variability throughout the period. Initially, it declined from 0.68 in 2015 to 0.55 in 2016, suggesting reduced efficiency in generating revenues from equity. However, this ratio recovered to 0.69 in 2017 and further increased sharply to 0.89 in 2018, indicating improved utilization of equity. In 2019, it slightly decreased to 0.8, which still represents relatively efficient equity use compared to earlier years.
- Overall Insights
- Despite a dip in revenues and equity turnover in 2016, the company demonstrated resiliency and growth in operating revenues and stockholders’ equity over the subsequent years. The improvement in the equity turnover ratio during 2017 and 2018 suggests enhanced operational efficiency. Even though the growth in revenues plateaued between 2018 and 2019, equity continued to build, highlighting increased shareholder value. The trends point to a strengthening financial position with improved resource utilization during the analyzed period.