Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
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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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Short-term Activity Ratios (Summary)
EOG Resources Inc., short-term (operating) activity 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 analysis of the quarterly financial ratios and periods reveals several notable trends and patterns over the examined periods.
- Inventory Turnover
- Inventory turnover exhibited an overall declining trend from early 2017 through 2019, decreasing from a peak of approximately 5.82 to around 2.92–3.39 by late 2019. This decline indicates that inventory was turning over less frequently, suggesting slower inventory movement or increased inventory levels relative to sales during the latter periods.
- Receivables Turnover
- The receivables turnover ratios fluctuated moderately but maintained a relatively stable range between 6.29 and 9.15 across the periods. This stability suggests consistent effectiveness in collecting accounts receivable, with slight improvements observed in mid to late 2019.
- Payables Turnover
- The payables turnover ratio steadily decreased from 1.7 in early 2016 to around 1.05–1.07 in late 2019, indicating that the company was taking longer to pay its suppliers over time. This extended payment period may reflect improved cash management or negotiated longer payment terms.
- Working Capital Turnover
- Working capital turnover showed significant volatility, with values oscillating from lows near 5 to extremely high peaks such as 222.34 in mid-2019. The large spikes suggest extraordinary changes in working capital or sales and possibly non-recurring fluctuations affecting the ratio's reliability in certain quarters. The trend is otherwise generally upward in 2017 and early 2019.
- Average Inventory Processing Period
- This metric decreased from 98 days in early 2016 to a low near 63 days in early 2017, reflecting faster inventory processing. However, it reversed thereafter, increasing steadily to peaks above 120 days by late 2018 and early 2019 before slightly declining again. This pattern aligns with the declining inventory turnover ratio, indicating slower inventory movement in later periods.
- Average Receivable Collection Period
- The average receivable collection period showed a fluctuating but overall increasing trend—from approximately 37 days to a peak near 58 days by the end of 2016—followed by stabilization around 40 to 52 days thereafter. The variations suggest changes in collection efficiency but generally stable receivables management in recent quarters.
- Operating Cycle
- The operating cycle lengthened over the periods, moving from around 135 days to peaks of approximately 171 days. This elongation reflects the combined effect of slower inventory processing and slightly longer receivables collection, indicating that cash is tied up longer in operating activities.
- Average Payables Payment Period
- The average payables payment period consistently extended from 214 days early on to over 340 days in recent quarters. This trend supports the observation in payables turnover, demonstrating a tendency toward extended payment terms or slower payments to suppliers.
- Cash Conversion Cycle
- The cash conversion cycle remained negative throughout all periods, indicating that payables were being paid after inventory was sold and receivables collected. The negative cycle became more pronounced, reaching lows near -230 days toward 2018 and fluctuating around -180 to -190 days in 2019. This suggests highly efficient management of working capital cash flows, allowing the company to use credit from suppliers to finance operations.
Turnover Ratios
Average No. Days
Inventory Turnover
EOG Resources Inc., inventory turnover 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) | |||||||||||||||||||||
| Cost of operating revenues | |||||||||||||||||||||
| Inventories | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, 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
Inventory turnover
= (Cost of operating revenuesQ4 2019
+ Cost of operating revenuesQ3 2019
+ Cost of operating revenuesQ2 2019
+ Cost of operating revenuesQ1 2019)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Operating Revenues
- The cost of operating revenues displayed a generally upward trend over the observed eight-quarter period from March 31, 2016, to December 31, 2019. Beginning at approximately $460 million, this metric experienced notable increases, particularly evident in the latest quarters where values reached above $670 million. The increase was gradual with some minor fluctuations, suggesting rising operational expenses or possibly growth in the scale of operations over time.
- Inventories
- Inventories exhibited a mixed pattern with a general upward trajectory beginning around $539 million in the first quarter of 2016. There was a marked decline by the end of 2016, followed by a steady recovery and substantial increases thereafter, peaking near $860 million by mid-2019 before slightly decreasing towards the end of 2019. This pattern could indicate inventory buildup possibly in anticipation of increased demand or changes in procurement or production strategy.
- Inventory Turnover Ratio
- The inventory turnover ratio initially increased from 3.73 to a peak of approximately 5.82 in early 2017, indicating improved efficiency in managing inventory relative to cost of sales. Following this peak, the ratio consistently declined, reaching a low point below 3 in late 2018 and early 2019, before recovering again to around 3.39 by the end of 2019. The declining turnover during the middle periods suggests slower movement of inventory against the cost of operating revenues, which may imply accumulation of stock or reduced sales velocity during that time.
- Overall Observations
- The combined trends of rising operating costs and inventories alongside a fluctuating inventory turnover ratio imply operational adjustments over the period analyzed. The increase in inventories paired with a lower turnover ratio in 2018 could reflect challenges in inventory management or shifts in market conditions affecting sales rates. The subsequent improvement in turnover ratio in late 2019 may suggest corrective actions taken to enhance inventory efficiency.
Receivables Turnover
EOG Resources Inc., receivables turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Operating revenues and other | |||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
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
Receivables turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data indicates several noteworthy trends in the company's quarterly performance from March 2016 through December 2019.
- Operating Revenues and Other
- The operating revenues demonstrate a general upward trajectory over the period analyzed. Starting from approximately 1.35 billion US dollars in the first quarter of 2016, revenues progressively increased to reach a peak of around 4.78 billion US dollars by the third quarter of 2018. Following this peak, a slight decline is observed towards the end of 2018 and into 2019, with revenues fluctuating between approximately 4.05 billion and 4.69 billion US dollars. Despite these fluctuations, the overall trend is a substantial growth in revenues over the nearly four-year span.
- Accounts Receivable, Net
- The net accounts receivable figures also show a general increasing trend, closely aligned with the growth in revenues. From about 780 million US dollars at the beginning of the period, the receivables rose to over 2.15 billion US dollars by the end of the third quarter of 2018. Thereafter, a decrease occurred in the following quarters, with values ranging between roughly 1.92 billion and 2.2 billion US dollars. This suggests a pattern of cyclical variation, potentially reflecting seasonal collection patterns or changes in credit terms.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits some variability without a clear long-term upward or downward trend. The ratio started near 10 in early 2016, indicating relatively efficient credit management. It then declined to lower values around mid-2016 through 2017, fluctuating generally between 6.29 and 8.74. From 2018 onward, the ratio hovered in a narrower band roughly between 7 and 9, with some peaks reaching over 9. This decline and subsequent stabilization suggest some variability in the rate at which receivables are converted to cash, possibly due to changing customer payment behaviors or credit policies.
Overall, the data points to strong revenue growth accompanied by increases in accounts receivable, consistent with expanding sales volume. However, the fluctuations in the receivables turnover ratio highlight potential variability in collection efficiency or credit management over the periods analyzed. Continued monitoring of these metrics would be prudent to ensure that growth in accounts receivable does not adversely affect liquidity.
Payables Turnover
EOG Resources Inc., payables turnover 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) | |||||||||||||||||||||
| Cost of operating revenues | |||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
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
Payables turnover
= (Cost of operating revenuesQ4 2019
+ Cost of operating revenuesQ3 2019
+ Cost of operating revenuesQ2 2019
+ Cost of operating revenuesQ1 2019)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Operating Revenues
-
The cost of operating revenues displayed a generally increasing trend across the examined periods. Beginning at approximately $460 million in early 2016, it showed minor fluctuations within that year but rose noticeably towards the end of 2017 and throughout 2018, peaking above $650 million by late 2018. A slight decrease is observed in early 2019, but the overall trajectory remains upward, indicating growing operational expenses over the timeframe.
- Accounts Payable
-
Accounts payable balances have shown a steady increase over the period, starting around $1.18 billion in early 2016 and climbing consistently to nearly $2.43 billion by the end of 2019. The growth is marked without significant reversals, reflecting increased obligations to suppliers or extended payment terms as the company’s activities expanded or its payables cycle lengthened.
- Payables Turnover Ratio
-
The payables turnover ratio exhibited a declining trend over most of the period from early 2016 through mid-2018, dropping from 1.7 to below 1.0 at one point, suggesting slower payment of payables or longer outstanding periods. After mid-2018, the ratio recovered moderately, hovering slightly above 1.0 through the end of 2019. This pattern reflects an initial lengthening of the payment cycle followed by some normalization, balancing supplier relationships and cash flow management.
- Overall Insights
-
The increases in both cost of operating revenues and accounts payable, alongside a general decline and subsequent partial recovery in payables turnover, suggest expanding operational scale accompanied by evolving payment practices. The company appears to be managing a growth in operational expenses while negotiating or extending payment terms with suppliers. These dynamics could impact cash flow and working capital efficiency and warrant monitoring to ensure sustainable supplier relationships and liquidity.
Working Capital Turnover
EOG Resources Inc., working capital turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current assets | |||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||
| Working capital | |||||||||||||||||||||
| Operating revenues and other | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, 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
Working capital turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in working capital, operating revenues, and working capital turnover over the analyzed quarters. These trends suggest varying liquidity and operational efficiency dynamics.
- Working Capital
- Working capital demonstrates considerable variability throughout the period. Starting from a level of approximately 818 million US dollars in the first quarter of 2016, it dips substantially by mid-2017, reaching a low point near 554 thousand US dollars by the end of 2017. Thereafter, it experiences recovery phases marked by a return to positive territory and surpasses 1.3 million US dollars in the final quarter of 2018. Subsequent quarters show oscillations, with a noticeable decline to around 81 thousand US dollars in mid-2019, followed by a sharp increase towards the end of 2019, culminating near 786 thousand US dollars. These fluctuations indicate periods of tightening liquidity interspersed with recoveries, possibly influenced by operational or external factors affecting short-term assets and liabilities.
- Operating Revenues and Other
- Operating revenues exhibit a strong upward trend over the reported quarters. Commencing at approximately 1.35 billion US dollars in early 2016, revenues increase steadily, exceeding 3 billion US dollars by the end of 2017 and continuing growth up to mid-2018 plateauing near 4.8 billion US dollars. The last four quarters show some volatility with revenues ranging from about 4.05 billion to 4.69 billion US dollars, suggesting sustained but slightly fluctuating revenue generation capability. This growth trajectory implies improved sales or production volumes, favorable market conditions, or enhanced pricing strategies over the period analyzed.
- Working Capital Turnover
- Working capital turnover ratios display significant volatility, reflecting changes in operational efficiency relative to working capital. Initial ratios of approximately 9.5 demonstrate moderate efficiency. However, by mid-2017, the ratio surges dramatically, peaking above 20 and reaching extraordinary values such as 222 in mid-2019. Such high ratios can indicate efficient use of limited working capital to generate revenues, but may also reflect minimal working capital availability rather than operational improvements. The fluctuations with missing data points suggest inconsistencies in the working capital base, which complicates straightforward efficiency interpretation.
In summary, the analysis shows that operating revenues consistently increased over time, signaling fundamental business growth. Meanwhile, working capital amounts varied widely, at times turning negative or near zero, indicating liquidity stress or changes in asset/liability management. The working capital turnover ratio's high variability further confirms unstable liquidity conditions influencing the efficiency of working capital use. The company likely faced challenges balancing growth with liquidity management during the periods examined.
Average Inventory Processing Period
EOG Resources Inc., average inventory processing period 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 | |||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover Trend
- The inventory turnover ratio exhibited an overall increasing trend from March 2016 to March 2017, rising from 3.73 to a peak of 5.82. This indicates an increasingly efficient conversion of inventory into sales during this period. However, after the peak, there was a notable decline in turnover throughout 2017 and 2018, reaching a low of 2.87 by December 2018. This downward trend suggests a slowdown in inventory movement or accumulation of stock. From early 2019 onwards, there was a moderate recovery, with turnover increasing again to 3.39 by the end of 2019, but it did not return to the peak levels observed in early 2017.
- Average Inventory Processing Period
- The average inventory processing period, measured in days, inversely mirrored the inventory turnover trend. Initially, the processing period decreased from 98 days in March 2016 to 63 days by March 2017, reflecting a faster inventory turnover and improved operational efficiency. Subsequently, the processing period lengthened significantly, increasing to 127 days by December 2018, indicative of slower inventory turnover and possible challenges in inventory management. Following this peak duration, a reduction occurred throughout 2019, bringing the processing time down to 108 days by December 2019. Despite this improvement, the period remained higher relative to earlier years, signifying persistent inefficiencies compared to the initial period.
- Insights and Implications
- The data reveals a cyclical pattern in inventory management efficiency over the four-year timeframe. The initial improvement phase early in the period suggests effective operational strategies or favorable market conditions. The middle phase’s decline in turnover and increase in processing time could imply market saturation, supply chain disruptions, or demand reduction. The partial recovery observed in 2019 indicates efforts to optimize inventory processes, although the performance had not fully rebounded to earlier peak efficiencies. Continuous monitoring and investigation into the factors influencing these fluctuations would be beneficial to sustain operational improvements moving forward.
Average Receivable Collection Period
EOG Resources Inc., average receivable collection period 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 | |||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio demonstrated notable fluctuations over the observed periods. The ratio started at 9.98 in the first quarter of 2016, then declined to its lowest point at 6.29 in the final quarter of 2016. Following this decline, the turnover showed recovery by generally increasing through 2017 and 2018, with periodic variances. By the end of 2018, it reached 9.02, indicating improved efficiency in collecting receivables. In 2019, the turnover remained relatively stable and high, fluctuating between 8.01 and 9.15, suggesting a consistent collection performance during this year.
- Average Receivable Collection Period
- The average receivable collection period exhibited an inverse pattern relative to receivables turnover. It began at 37 days in early 2016, extended to a peak of 58 days by the end of that year, implying slower collection of receivables. During 2017 and 2018, this collection period generally decreased, with some fluctuations, reaching a minimum of 40 days in the last quarter of 2018. This indicates an improvement in the speed of collecting receivables. In 2019, the period stabilized around 40 to 46 days, reflecting a consistent and relatively shorter collection timeline compared to earlier years.
- Overall Insights
- Both metrics exhibit typical inverse relationships, with periods of increased turnover corresponding to shorter collection periods. The overall trend suggests that after a period of increasing days to collect receivables and declining turnover ratios in 2016, the company took measures resulting in improved receivables management beginning in 2017 and sustaining through 2019. The stabilization of the collection period around 40-46 days and turnover ratios near or above 8 in recent periods points to enhanced operational efficiency in credit and collections management.
Operating Cycle
EOG Resources Inc., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
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 cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited a general downward trend from March 2016 through March 2017, decreasing from 98 days to 63 days, indicating improved efficiency in inventory management during this period. However, from June 2017 onward, there was a noticeable upward trend, peaking at 127 days by December 2018. Following this peak, a gradual decrease ensued but remained elevated compared to early 2016, ending at 108 days in December 2019. This pattern suggests cyclical fluctuations with periods of extended inventory holding later in the timeline.
- Average Receivable Collection Period
- The average receivable collection period showed considerable variability with no clear long-term trend. The collection period increased from 37 days in March 2016 to a peak of 58 days in December 2016, implying slower collections during that quarter. Thereafter, it fluctuated, generally decreasing through 2017 and hitting lower levels around 40 days in late 2018 and into 2019, suggesting some improvement in receivables management during this latter period. Despite these fluctuations, the receivable collection period remained relatively stable around the mid-40-day range during most of the timeline.
- Operating Cycle
- The operating cycle declined from 135 days in March 2016 to a low of 107 days in June 2017, reflecting improvements in working capital efficiency through quicker inventory processing and receivable collection. Subsequently, the operating cycle lengthened markedly, reaching a peak of 171 days in March 2019. This extension was largely driven by the increase in the average inventory processing period during the same timeframe. By December 2019, the operating cycle shortened slightly to 150 days but remained significantly longer compared to early periods, indicating a sustained longer duration to convert inventory and receivables into cash flows towards the end of the period analyzed.
Average Payables Payment Period
EOG Resources Inc., average payables payment period 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 | ||||||
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| Selected Financial Data | |||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibits a general declining trend from March 31, 2016, through December 31, 2017. It decreases from 1.7 to 1.05 over this period, indicating a slowing rate in accounts payable turnover. A slight recovery is observed in the last quarter of 2017 and into early 2018; however, the ratio remains below earlier levels, fluctuating around 1.0 through to the end of 2019. This lower turnover rate suggests that the company is taking longer on average to settle its payables compared to the earlier periods.
- Average Payables Payment Period
- The average payables payment period displays an increasing trend throughout the entirety of the observed period. Starting at 214 days in the first quarter of 2016, it rises steadily to 349 days by the end of 2017. This upward trajectory continues into subsequent years, peaking at 394 days in the second quarter of 2018, before declining somewhat but remaining elevated above 330 days through to the close of 2019. This extended payment period aligns with the observed decrease in payables turnover, confirming that the company is progressively taking longer to fulfill its payment obligations.
- Overall Insights
- The combined analysis of both metrics indicates that over the four-year timeframe, there has been a consistent elongation in the time taken to pay suppliers and vendors. The reduction in payables turnover ratio, paired with the increased average payment period in days, suggests a strategic or operational shift towards extended payment terms or potential liquidity management practices affecting payment timings. Careful monitoring would be advisable, as prolonged payment periods may impact supplier relations or credit terms.
Cash Conversion Cycle
EOG Resources Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | |||||||||||||||||||||
| ConocoPhillips | |||||||||||||||||||||
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited a downward trend from March 2016 through March 2017, declining from 98 days to 63 days. This suggests an improvement in inventory turnover and operational efficiency during that time. However, starting from mid-2017, the period generally increased again, reaching a peak of 127 days by the end of 2018. After this peak, there was a gradual reduction to 108 days by December 2019, indicating some recovery in inventory management efficiency.
- Average Receivable Collection Period
- The average receivable collection period fluctuated moderately over the analyzed quarters. It rose from 37 days in March 2016 to a high of 58 days by the end of that year, implying slower collection of receivables. Throughout 2017 and 2018, the period remained mostly in the range of 40 to 52 days without a clear trend of consistent improvement or deterioration. Towards the end of 2019, this metric stabilized around 40 to 42 days, suggesting some tightening in receivables management.
- Average Payables Payment Period
- The average payables payment period displayed a generally increasing trend over the period analyzed, starting at 214 days in March 2016 and reaching a peak of 394 days in mid-2018. This indicates a lengthening of the time taken to pay suppliers, which could be a strategic decision to optimize cash flow. Following the peak, the period declined to about 331 days by December 2018 but then increased again to around 340 days in 2019, suggesting continued reliance on extended payment terms.
- Cash Conversion Cycle
- The cash conversion cycle was consistently negative throughout the period, reflecting that payables were being extended beyond the combined duration of inventory processing and receivables collection. The negativity of the cycle deepened from -79 days in early 2016 to approximately -207 days by mid-2017, indicating increasingly favorable working capital dynamics. After reaching a maximum length at around -231 days in mid-2018, the cycle shortened somewhat to about -164 days by the end of that year. The subsequent period shows a return to a deeper negative cycle near -190 days, which may imply a strategic balance between maintaining liquidity and operational needs.