Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
EOG Resources Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | EOG Resources Inc. inventory turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | EOG Resources Inc. receivables turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | EOG Resources Inc. payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | EOG Resources Inc. working capital turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | EOG Resources Inc. number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | EOG Resources Inc. number of days of receivables outstanding improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | EOG Resources Inc. operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | EOG Resources Inc. cash conversion cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Inventory Turnover
EOG Resources Inc., inventory 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) | ||||||
| Cost of operating revenues | 2,604,395) | 2,466,527) | 1,933,974) | 1,814,459) | 2,177,757) | |
| Inventories | 767,297) | 859,359) | 483,865) | 350,017) | 598,935) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 3.39 | 2.87 | 4.00 | 5.18 | 3.64 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chevron Corp. | 23.92 | — | — | — | — | |
| ConocoPhillips | 31.74 | — | — | — | — | |
| Exxon Mobil Corp. | 13.79 | — | — | — | — | |
| Marathon Petroleum Corp. | 10.76 | — | — | — | — | |
| Occidental Petroleum Corp. | 14.09 | — | — | — | — | |
| Valero Energy Corp. | 14.76 | — | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 15.01 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Energy | 14.32 | — | — | — | — | |
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
Inventory turnover = Cost of operating revenues ÷ Inventories
= 2,604,395 ÷ 767,297 = 3.39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | EOG Resources Inc. inventory turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Receivables Turnover
EOG Resources Inc., receivables 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 | 17,379,973) | 17,275,399) | 11,208,320) | 7,650,632) | 8,757,428) | |
| Accounts receivable, net | 2,001,658) | 1,915,215) | 1,597,494) | 1,216,320) | 930,610) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.68 | 9.02 | 7.02 | 6.29 | 9.41 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Chevron Corp. | 10.50 | — | — | — | — | |
| ConocoPhillips | 9.97 | — | — | — | — | |
| Exxon Mobil Corp. | 12.11 | — | — | — | — | |
| Marathon Petroleum Corp. | 15.75 | — | — | — | — | |
| Occidental Petroleum Corp. | 3.20 | — | — | — | — | |
| Valero Energy Corp. | 13.44 | — | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 11.35 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Energy | 10.53 | — | — | — | — | |
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
Receivables turnover = Operating revenues and other ÷ Accounts receivable, net
= 17,379,973 ÷ 2,001,658 = 8.68
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | EOG Resources Inc. receivables turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Payables Turnover
EOG Resources Inc., payables 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) | ||||||
| Cost of operating revenues | 2,604,395) | 2,466,527) | 1,933,974) | 1,814,459) | 2,177,757) | |
| Accounts payable | 2,429,127) | 2,239,850) | 1,847,131) | 1,511,826) | 1,471,953) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 1.07 | 1.10 | 1.05 | 1.20 | 1.48 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Chevron Corp. | 9.92 | — | — | — | — | |
| ConocoPhillips | 10.25 | — | — | — | — | |
| Exxon Mobil Corp. | 10.35 | — | — | — | — | |
| Marathon Petroleum Corp. | 9.48 | — | — | — | — | |
| Occidental Petroleum Corp. | 2.91 | — | — | — | — | |
| Valero Energy Corp. | 10.15 | — | — | — | — | |
| Payables Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 9.35 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Energy | 9.14 | — | — | — | — | |
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
Payables turnover = Cost of operating revenues ÷ Accounts payable
= 2,604,395 ÷ 2,429,127 = 1.07
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | EOG Resources Inc. payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
Working Capital Turnover
EOG Resources Inc., working capital 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) | ||||||
| Current assets | 5,273,339) | 5,057,390) | 3,279,108) | 3,554,603) | 2,592,244) | |
| Less: Current liabilities | 4,486,988) | 3,728,364) | 2,725,542) | 2,027,291) | 1,819,287) | |
| Working capital | 786,351) | 1,329,026) | 553,566) | 1,527,312) | 772,957) | |
| Operating revenues and other | 17,379,973) | 17,275,399) | 11,208,320) | 7,650,632) | 8,757,428) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 22.10 | 13.00 | 20.25 | 5.01 | 11.33 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Chevron Corp. | 77.75 | — | — | — | — | |
| ConocoPhillips | 3.30 | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | 30.81 | — | — | — | — | |
| Occidental Petroleum Corp. | 5.46 | — | — | — | — | |
| Valero Energy Corp. | 18.65 | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 60.26 | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Energy | 51.98 | — | — | — | — | |
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
Working capital turnover = Operating revenues and other ÷ Working capital
= 17,379,973 ÷ 786,351 = 22.10
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | EOG Resources Inc. working capital turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Average Inventory Processing Period
EOG Resources Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 3.39 | 2.87 | 4.00 | 5.18 | 3.64 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 108 | 127 | 91 | 70 | 100 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chevron Corp. | 15 | — | — | — | — | |
| ConocoPhillips | 11 | — | — | — | — | |
| Exxon Mobil Corp. | 26 | — | — | — | — | |
| Marathon Petroleum Corp. | 34 | — | — | — | — | |
| Occidental Petroleum Corp. | 26 | — | — | — | — | |
| Valero Energy Corp. | 25 | — | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 24 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Energy | 25 | — | — | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.39 = 108
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | EOG Resources Inc. number of days of inventory outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Average Receivable Collection Period
EOG Resources Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.68 | 9.02 | 7.02 | 6.29 | 9.41 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 42 | 40 | 52 | 58 | 39 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Chevron Corp. | 35 | — | — | — | — | |
| ConocoPhillips | 37 | — | — | — | — | |
| Exxon Mobil Corp. | 30 | — | — | — | — | |
| Marathon Petroleum Corp. | 23 | — | — | — | — | |
| Occidental Petroleum Corp. | 114 | — | — | — | — | |
| Valero Energy Corp. | 27 | — | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 32 | — | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Energy | 35 | — | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.68 = 42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | EOG Resources Inc. number of days of receivables outstanding improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Operating Cycle
EOG Resources Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 108 | 127 | 91 | 70 | 100 | |
| Average receivable collection period | 42 | 40 | 52 | 58 | 39 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 150 | 167 | 143 | 128 | 139 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chevron Corp. | 50 | — | — | — | — | |
| ConocoPhillips | 48 | — | — | — | — | |
| Exxon Mobil Corp. | 56 | — | — | — | — | |
| Marathon Petroleum Corp. | 57 | — | — | — | — | |
| Occidental Petroleum Corp. | 140 | — | — | — | — | |
| Valero Energy Corp. | 52 | — | — | — | — | |
| Operating Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 56 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Energy | 60 | — | — | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 108 + 42 = 150
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | EOG Resources Inc. operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Average Payables Payment Period
EOG Resources Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 1.07 | 1.10 | 1.05 | 1.20 | 1.48 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 340 | 331 | 349 | 304 | 247 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Chevron Corp. | 37 | — | — | — | — | |
| ConocoPhillips | 36 | — | — | — | — | |
| Exxon Mobil Corp. | 35 | — | — | — | — | |
| Marathon Petroleum Corp. | 38 | — | — | — | — | |
| Occidental Petroleum Corp. | 126 | — | — | — | — | |
| Valero Energy Corp. | 36 | — | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Oil, Gas & Consumable Fuels | 39 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Energy | 40 | — | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 1.07 = 340
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
EOG Resources Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 108 | 127 | 91 | 70 | 100 | |
| Average receivable collection period | 42 | 40 | 52 | 58 | 39 | |
| Average payables payment period | 340 | 331 | 349 | 304 | 247 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -190 | -164 | -206 | -176 | -108 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chevron Corp. | 13 | — | — | — | — | |
| ConocoPhillips | 12 | — | — | — | — | |
| Exxon Mobil Corp. | 21 | — | — | — | — | |
| Marathon Petroleum Corp. | 19 | — | — | — | — | |
| Occidental Petroleum Corp. | 14 | — | — | — | — | |
| Valero Energy Corp. | 16 | — | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Oil, Gas & Consumable Fuels | 17 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Energy | 20 | — | — | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 108 + 42 – 340 = -190
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | EOG Resources Inc. cash conversion cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |