Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

EOG Resources Inc., profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	EOG Resources Inc.’s gross profit margin improved from 2015 to 2016 and from 2016 to 2017.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	EOG Resources Inc.’s operating profit margin improved from 2015 to 2016 and from 2016 to 2017.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	EOG Resources Inc.’s net profit margin improved from 2015 to 2016 and from 2016 to 2017.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	EOG Resources Inc.’s ROE improved from 2015 to 2016 and from 2016 to 2017.
ROA	A profitability ratio calculated as net income divided by total assets.	EOG Resources Inc.’s ROA improved from 2015 to 2016 and from 2016 to 2017.

EOG Resources Inc., gross profit margin calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Gross profit
	Net operating revenues and other
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Chevron Corp.
	ConocoPhillips
	Exxon Mobil Corp.
	Occidental Petroleum Corp.
	Phillips 66

2017 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Net operating revenues and other
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	EOG Resources Inc.’s gross profit margin improved from 2015 to 2016 and from 2016 to 2017.

EOG Resources Inc., operating profit margin calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Operating income (loss)
	Net operating revenues and other
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Chevron Corp.
	ConocoPhillips
	Exxon Mobil Corp.
	Occidental Petroleum Corp.
	Phillips 66
	Operating Profit Margin, Sector
	Oil & Gas Producers
	Operating Profit Margin, Industry
	Oil & Gas

2017 Calculations

¹ Operating profit margin = 100 × Operating income (loss) ÷ Net operating revenues and other
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	EOG Resources Inc.’s operating profit margin improved from 2015 to 2016 and from 2016 to 2017.

EOG Resources Inc., net profit margin calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Net income (loss)
	Net operating revenues and other
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Chevron Corp.
	ConocoPhillips
	Exxon Mobil Corp.
	Occidental Petroleum Corp.
	Phillips 66
	Net Profit Margin, Sector
	Oil & Gas Producers
	Net Profit Margin, Industry
	Oil & Gas

2017 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Net operating revenues and other
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	EOG Resources Inc.’s net profit margin improved from 2015 to 2016 and from 2016 to 2017.

EOG Resources Inc., ROE calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Net income (loss)
	Stockholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Chevron Corp.
	ConocoPhillips
	Exxon Mobil Corp.
	Occidental Petroleum Corp.
	Phillips 66
	ROE, Sector
	Oil & Gas Producers
	ROE, Industry
	Oil & Gas

2017 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	EOG Resources Inc.’s ROE improved from 2015 to 2016 and from 2016 to 2017.

EOG Resources Inc., ROA calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Selected Financial Data (USD $ in thousands)
	Net income (loss)
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Chevron Corp.
	ConocoPhillips
	Exxon Mobil Corp.
	Occidental Petroleum Corp.
	Phillips 66
	ROA, Sector
	Oil & Gas Producers
	ROA, Industry
	Oil & Gas

2017 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	EOG Resources Inc.’s ROA improved from 2015 to 2016 and from 2016 to 2017.

	EOG Resources Inc.	Other companies (not purchased previously)
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Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Long-term Trends
Analysis
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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Long-term Trends
Analysis
Financial Reporting Quality

EOG Resources Inc. (EOG)

Profitability Analysis