Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
EOG Resources Inc. pages available for free this week:
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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:
Profitability Ratios (Summary)
EOG Resources Inc., profitability 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).
The financial performance demonstrates a clear trend of gradual improvement across the majority of profitability and efficiency ratios over the analyzed quarters.
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trajectory, increasing from approximately 74% in early 2016 to over 85% by the end of 2019. This steady improvement indicates enhanced cost management or pricing power, contributing positively to the core profitability of the operations.
- Operating Profit Margin
- The operating profit margin shows a remarkable recovery over the period. Starting with significant operating losses exceeding -90% in early 2016, the margin steadily improved, turning positive in mid-2017 and reaching levels above 20% by late 2018 and maintaining strong profitability through 2019. This suggests effective control of operating expenses and potentially better operational efficiencies or revenue quality.
- Net Profit Margin
- Similar to the operating margin, the net profit margin recovers from substantial negative values around -60% in early 2016 to positive territory in the second half of 2017. It peaks near 31% during 2018 before settling in the high teens to mid-teens percent range in 2019. This pattern reflects improvements in overall profitability after accounting for all expenses, including taxes, interest, and other non-operating costs.
- Return on Equity (ROE)
- ROE follows the improving trend, beginning with deeply negative returns in excess of -38% at the start of the period and improving steadily to over 26% by late 2018. Although it somewhat declines to around 12-14% in 2019, the overall movement indicates better utilization of shareholders' equity to generate profits, albeit with some recent moderation.
- Return on Assets (ROA)
- The ROA mirrors the ROE trend, starting from negative values near -18% and steadily increasing to 14.74% by late 2018, before modest declines to approximately 7-8% in 2019. The positive returns in recent years signify improved efficiency in asset utilization to generate profit, though the slight decline towards the end could merit further investigation.
In summary, the data reveal significant recovery and improvement in profitability metrics from early 2016 through 2018, with some stabilization and slight moderation in 2019. The upward trends in gross and operating margins, along with positive returns on equity and assets, suggest enhanced operational performance and financial health throughout the period, despite some recent softness in the final quarters.
Return on Sales
Return on Investment
Gross Profit Margin
EOG Resources Inc., gross profit margin calculation (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).
1 Q4 2019 Calculation
Gross profit margin = 100
× (Gross profitQ4 2019
+ Gross profitQ3 2019
+ Gross profitQ2 2019
+ Gross profitQ1 2019)
÷ (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
= 100 × ( + + + )
÷ ( + + + )
=
The financial data reflects the quarterly performance over multiple years, showing trends in gross profit, operating revenues, and gross profit margin.
- Gross Profit
- Gross profit has exhibited a generally upward trend from early 2016 through late 2018, increasing from approximately $895 million to around $4.15 billion. The figure peaked in the third quarter of 2018 before experiencing a slight decline and fluctuations in the subsequent quarters of 2019, falling to roughly $3.63 billion by the end of 2019. This pattern indicates robust growth initially, followed by some volatility towards the later periods examined.
- Operating Revenues and Other
- Operating revenues and other income present a similar trajectory to gross profit, increasing steadily from about $1.35 billion in the first quarter of 2016 to a high near $4.78 billion in the third quarter of 2018. After this peak, revenues slightly decreased and showed variability throughout 2019, settling around $4.32 billion in the last quarter. This trend suggests that revenue growth accompanied the gains in gross profit, with some moderation in the final observed year.
- Gross Profit Margin
- The gross profit margin percentage steadily improved over the period, starting near 74.19% in the first quarter of 2016 and progressively rising to stabilize above 85% from late 2017 onward. The margin reached a maximum around 85.95% in mid-2019 before a slight dip towards the end of 2019, maintaining a level just above 85%. This increasing margin indicates enhanced efficiency or improved cost management, contributing to an improved profitability profile despite revenue and gross profit fluctuations.
Operating Profit Margin
EOG Resources Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Operating income (loss) | |||||||||||||||||||||
| Operating revenues and other | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating income (loss)Q4 2019
+ Operating income (loss)Q3 2019
+ Operating income (loss)Q2 2019
+ Operating income (loss)Q1 2019)
÷ (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income shows a significant improvement over the analyzed period. Initially, there were substantial operating losses in early 2016, reaching the lowest point at -$638 million in the first quarter of 2016. Losses diminished progressively through the year, turning into positive operating income starting in the first quarter of 2017. From that point onward, the company experienced consistent operating profits, with notable peaks reaching over $1.5 billion in the third quarter of 2018. Although there were some fluctuations in the latter periods of 2019, the operating income remained positive and relatively stable, indicating improved operational efficiency and profitability over time.
- Operating Revenues and Other
- Operating revenues demonstrated a steady upward trajectory throughout the period under review. Revenues increased from approximately $1.35 billion in the first quarter of 2016 to exceed $4.7 billion by the second quarter of 2019. Despite some quarter-to-quarter variability, particularly a slight decline in the last quarter of 2018 and partial quarters of 2019, the overall trend signifies robust revenue growth. This suggests increased sales or pricing power, contributing positively to the company's financial performance.
- Operating Profit Margin
- The operating profit margin exhibited a marked turnaround from highly negative levels in early 2016, starting at approximately -92% and worsening to over -105% mid-2016. Following this period, there was a steady and sustained improvement in margins, crossing into positive territory by the third quarter of 2017. Margins continued to rise, peaking above 25% in the last quarters of 2018. Although there was a slight decline in margin percentages in 2019, margins remained robust at above 20%, indicating sustained profitability relative to revenues.
- Summary of Trends
- The overall trends reveal a transition from significant operating losses to solid profitability over the nearly four-year span. The consistent increase in operating revenues coupled with improved operating profit margins reflects enhanced operational performance and effective cost management. The stabilization of operating income at positive levels in recent quarters aligns with the improved margin percentages, reinforcing a stronger financial position. While some variability was observed in the most current periods, the general direction points to a healthier and more profitable operational model compared to the initial period analyzed.
Net Profit Margin
EOG Resources Inc., net profit margin 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) | |||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||
| Operating revenues and other | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net income (loss)Q4 2019
+ Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019)
÷ (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance over the observed quarters reveals significant fluctuations and an overall positive trend toward profitability and revenue growth.
- Net Income (Loss)
- Initially, net income exhibited substantial negative values, with the largest loss occurring in the first quarter of 2016. Losses gradually diminished throughout the remainder of 2016. Starting in the first quarter of 2017, the company reported positive net income, which increased notably by the fourth quarter of 2017, reaching a pronounced peak. Following this surge, net income remained consistently positive and showed some fluctuations but stayed within a strong range through 2018 and 2019.
- Operating Revenues and Other
- Revenues demonstrated a steady upward trend from early 2016 through 2018, reaching their maximum value in the third quarter of 2018 before experiencing a slight decline in the subsequent quarters. Despite minor decreases in late 2018 and early 2019, revenue levels remained substantially higher compared to the start of the period, indicating sustained growth over time.
- Net Profit Margin
- Net profit margins were deeply negative throughout 2016, reflecting the net losses. Margins improved gradually during 2017, crossing into positive territory by the third quarter and sharply rising in the fourth quarter to strong double-digit positive values. Margins remained positive throughout 2018 and 2019, peaking in late 2018 before mildly declining but stabilizing at healthy levels above 15%.
In summary, the data reveals that the firm experienced a challenging start with significant losses but managed to reverse the trend, achieving consistent profitability and revenue growth starting in 2017. The improvement in net profit margin corroborates the strengthened bottom-line performance, while operating revenues exhibit a robust expansion, signaling enhanced operational efficiency and market conditions over the examined period.
Return on Equity (ROE)
EOG Resources Inc., ROE 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) | |||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income (loss)Q4 2019
+ Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data demonstrates a significant improvement in the company's profitability and return on equity over the observed periods. Initially, the company experienced substantial net losses, with the largest loss recorded in the first quarter of 2016 at approximately -471.8 million US dollars. These losses steadily decreased in magnitude through 2016, reaching a near break-even point by the last quarter of that year.
Starting in 2017, the company shifted to profitability, with net income turning positive in the first quarter and continuing to grow substantially by the end of the year. The most pronounced growth period was the fourth quarter of 2017, where net income surged to approximately 2.43 billion US dollars. This positive trend generally continued through to 2019, albeit with fluctuations, maintaining income levels in the mid to high hundreds of millions.
Stockholders’ equity shows a generally upward trajectory, increasing from about 12.4 billion US dollars in the first quarter of 2016 to over 21.6 billion US dollars by the last quarter of 2019. There was a notable increase in equity toward the end of 2016 and continuing growth through subsequent years, indicating strengthening financial stability and accumulation of retained earnings or capital infusion over time.
The return on equity (ROE) metric aligns with these trends. Initially, the ROE was deeply negative throughout 2016, reflecting the substantial losses incurred. This value slightly improved towards the end of 2016. In 2017, the ROE moved into positive territory, crossing zero in the third quarter and sharply increasing to nearly 16% in the final quarter. Throughout 2018, ROE continued to strengthen, reaching its peak at 26.74% in the third quarter before slightly declining in the last quarter. In 2019, ROE stabilized between approximately 12.6% and 17.3%, suggesting consistent profitability relative to equity.
Overall, the data indicates a company transitioning from periods of heavy losses to sustained profitability and enhanced shareholder value, reflected by both rising net income and equity, as well as improving returns on equity. The fluctuations in quarterly results emphasize a volatile but upward growth trajectory during the observed period.
Return on Assets (ROA)
EOG Resources Inc., ROA 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) | |||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income (loss)Q4 2019
+ Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income exhibited a significant turnaround over the observed periods. Initially, there was a substantial net loss ranging from approximately -471.8 million to -142.4 million US dollars during 2016. Beginning in the first quarter of 2017, the company moved into profitability, with positive net income reported consistently thereafter. Profit figures surged notably by the last quarter of 2017, reaching over 2.4 billion US dollars. This upward trend in profitability continued with fluctuating but generally strong positive net income values throughout 2018 and 2019, maintaining levels mostly above 600 million US dollars.
- Total Assets Evolution
- Total assets demonstrated a steady upward trajectory throughout the entire period. Starting around 26.3 billion US dollars in early 2016, the asset base showed moderate fluctuations but maintained overall growth. By the end of 2019, total assets had increased to approximately 37.1 billion US dollars, indicating sustained asset accumulation or revaluation contributing to company growth.
- Return on Assets (ROA) Pattern
- The return on assets epitomized a major recovery from negative to positive values. Initially, ROA was deeply negative, with values as low as -19.84% in mid-2016. However, a consistent improvement began around 2017, culminating in positive returns by the final quarter of 2017, reaching 8.66%. Thereafter, ROA showed further strengthening, peaking over 14% in late 2018 before stabilizing in the range of approximately 7% to 10% throughout 2019. This indicates improved asset profitability and operational efficiency over the years.
- Summary of Financial Performance
- Overall, the financial data reflect a company that overcame significant losses in 2016 to establish and sustain profitability from 2017 onwards. The increase in net income is accompanied by a steady expansion in total assets and marked improvement in asset utilization as demonstrated by climbing ROA figures. This suggests effective management actions or market conditions driving enhanced profitability and asset management. Despite some variations in profitability metrics, the general trend represents positive momentum in financial health during the analyzed timeframe.