Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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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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Solvency Ratios (Summary)
EOG Resources Inc., solvency 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).
- Debt Ratios
- Over the observed periods, the debt to equity ratio shows a consistent downward trend, decreasing from 0.56 at the beginning to 0.24 at the end. When considering operating lease liabilities, this ratio follows a similar declining pattern but with slightly higher values in later periods, reflecting adjustments for lease obligations. The debt to capital ratio also declines steadily, moving from 0.36 to 0.19, indicating a gradual reduction in reliance on debt financing relative to total capital. Including operating lease liabilities results in a marginally higher ratio but maintains the same overall downward trajectory. The debt to assets ratio declines from 0.27 to 0.14, suggesting a reduction in debt burden relative to total assets, and this trend persists even when operating leases are considered, though values remain slightly elevated.
- Financial Leverage
- Financial leverage decreases over the duration but exhibits less variation compared to the debt ratios, moving from approximately 2.12 to about 1.72. There is a notable dip between the middle and later periods, indicating an improvement in the equity base or reductions in assets financed by debt.
- Interest Coverage
- Interest coverage presents a significant improvement trend. Initially, the ratio is negative, indicating inability to cover interest expenses from operating earnings, with values as low as -28.3 and -28.52, signaling considerable financial strain. Over time, this ratio improves steadily, reaching positive territory by late 2017 and then rising sharply to values above 20 by the final periods. This marks a substantial enhancement in the company’s ability to meet interest obligations, suggesting improved profitability and/or reduced interest expenses.
- General Observations
- The data collectively indicate enhanced financial stability and creditworthiness over the observed timeframe. The consistent reduction in various debt ratios suggests deleveraging and a stronger capital structure. Coupled with the marked improvement in interest coverage, the company’s liquidity and operational efficiency in covering debt-related costs have significantly improved. Adjustments incorporating operating lease liabilities reveal that while lease obligations slightly increase leverage metrics, the overall positive trends remain intact.
Debt Ratios
Coverage Ratios
Debt to Equity
EOG Resources Inc., debt to equity 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 portion of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, 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
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from the first quarter of 2016 through the second quarter of 2017, with values oscillating slightly around 6.98 billion US dollars. A noticeable decrease occurred beginning in the third quarter of 2017, dropping from approximately 6.39 billion to around 6.08 billion US dollars by the fourth quarter of 2018. This downward trend continued more sharply in 2019, with total debt declining further to approximately 5.18 billion by midyear and maintaining around 5.17 billion toward the end of the year.
- Stockholders’ Equity
- Stockholders’ equity showed a generally increasing trend throughout the period. Starting from about 12.40 billion US dollars in early 2016, the figure experienced a dip during the middle of 2016 but then rose considerably by the end of that year. Throughout 2017 and 2018, equity consistently increased, reaching over 19 billion US dollars by the end of 2018. The upward trend continued into 2019, with equity growing steadily and reaching approximately 21.64 billion US dollars by the fourth quarter.
- Debt to Equity Ratio
- The debt to equity ratio demonstrated a continuous decline over the period under review. Initially, the ratio hovered around 0.56 to 0.59 in early 2016, indicating a moderate level of leverage. From the end of 2016 onward, this ratio steadily decreased, falling below 0.5 and then further tapering off to about 0.31 by the end of 2018. The decline persisted in 2019, reaching approximately 0.24 by the end of that year. This consistent reduction suggests a strengthening equity base relative to debt.
- Overall Financial Trends
- The data reflects a strong deleveraging trend, with total debt being actively reduced while stockholders’ equity increases substantially. The declining debt to equity ratio confirms this shift towards a more conservative capital structure, potentially implying improved financial stability and lower financial risk. These trends suggest a strategic focus on enhancing equity financing or earnings retention while managing the debt obligations effectively.
Debt to Equity (including Operating Lease Liability)
EOG Resources Inc., debt to equity (including operating lease liability) 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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
- Total Debt (Including Operating Lease Liability)
- The total debt remained relatively stable throughout 2016 and the first half of 2017, fluctuating slightly around approximately 6.98 billion US dollars. A notable reduction occurred in the second half of 2017, with debt decreasing to about 6.39 billion US dollars and then maintaining a steady level close to 6.43 billion through 2018 Q1 to Q4. In 2019, there was a significant decline in total debt, reaching approximately 5.54 billion US dollars by the end of the year. This trend indicates an overall deleveraging effort by the company.
- Stockholders’ Equity
- Stockholders’ equity displayed a generally increasing trend over the examined periods. Starting at around 12.4 billion US dollars in early 2016, equity showed steady growth, with a marked increase in the last quarter of 2016 up to nearly 14 billion US dollars. Throughout 2017 and 2018, equity continued to rise consistently, surpassing 19 billion US dollars by the end of 2018. This upward trajectory persisted in 2019, reaching over 21.6 billion US dollars by the final quarter, reflecting accumulating retained earnings and possibly other equity-enhancing activities.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio exhibited a declining trend over the entire period, indicative of reduced financial leverage. Initially, the ratio was approximately 0.56 at the beginning of 2016, slightly increasing to 0.59 during Q3 2016, before decreasing to 0.50 by the end of that year and stabilizing around 0.5 in the first half of 2017. A consistent decline followed, reaching 0.39 by the end of 2017 and continuing downward to 0.31 at the close of 2018. The most pronounced reduction occurred in 2019, where the ratio further fell to about 0.26, reflecting a substantial strengthening of the equity base relative to debt.
- Overall Analysis
- The data indicates a strategic focus on strengthening the balance sheet through decreasing total debt and growing stockholders’ equity. The consistent reduction in the debt to equity ratio reflects a shift towards lower financial risk and greater capitalization. The upward trend in equity coupled with the deleveraging suggests improved financial health and potentially enhanced capacity for future investments or cushioning against market volatility.
Debt to Capital
EOG Resources Inc., debt to capital 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 portion of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Total capital | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, 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
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends regarding the company's debt and capital structure over the examined periods.
- Total Debt
- The total debt remained relatively stable from the first quarter of 2016 through mid-2017, fluctuating slightly around approximately 6.98 billion US dollars. From the third quarter of 2017 onwards, there was a noticeable reduction in total debt, with the figure declining gradually to about 5.18 billion US dollars by the end of 2019. This indicates a consistent effort to deleverage or reduce outstanding liabilities in the later periods.
- Total Capital
- Total capital demonstrated a generally upward trend throughout the period. Starting at approximately 19.4 billion US dollars in early 2016, total capital initially experienced some fluctuations but increased steadily after the third quarter of 2016. The growth accelerated notably from late 2017, reaching approximately 26.8 billion US dollars by the end of 2019. This increase in capital suggests expanded financing or equity inflows, strategic investments, or retained earnings growth.
- Debt to Capital Ratio
- The debt to capital ratio exhibited a clear declining trend over the observed quarters. Beginning at around 0.36 in the first quarter of 2016, the ratio remained fairly stable initially but decreased consistently starting from 2017. By the end of 2019, the ratio had dropped to approximately 0.19, reflecting a significant reduction in financial leverage. This decrease aligns with the reduction in total debt and the increase in total capital, indicating stronger capitalization and possibly a more conservative financial posture.
Overall, the company appears to have improved its capital structure by reducing reliance on debt financing while increasing total capital, thus enhancing financial stability over the examined timeframe.
Debt to Capital (including Operating Lease Liability)
EOG Resources Inc., debt to capital (including operating lease liability) 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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
The financial data reveals several noteworthy trends related to debt, capital structure, and leverage ratios over the examined periods.
- Total Debt (including operating lease liability)
- The total debt level remained relatively stable from March 2016 through June 2017, fluctuating slightly around approximately $6.98 billion. A notable reduction occurred starting in September 2017, with debt decreasing to about $6.39 billion by the end of that year. This downward trend continued gradually through December 2018, culminating around $6.08 billion. Subsequently, debt levels declined more sharply in 2019, reaching approximately $5.54 billion by the year-end. Overall, the total debt demonstrated a clear declining trajectory, especially pronounced during 2018 and 2019.
- Total Capital (including operating lease liability)
- Total capital displayed more variability and a general upward trend over the observed quarters. Initially, capital decreased slightly from about $19.39 billion in March 2016 to near $18.78 billion in September 2016. However, from the end of 2016 onward, total capital showed continual growth, increasing from approximately $20.97 billion at the end of 2016 to nearly $25.45 billion by the end of 2018. This expansion persisted through 2019, with capital reaching approximately $27.19 billion by the close of that year. This indicates an overall expansion in the company's capital base during the period.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio exhibited a pronounced downward trend throughout the timeframe. Starting at 0.36 in March 2016, the ratio remained near this level until mid-2016. Then, it began to steadily decline, dropping below 0.30 by the end of 2017, reaching 0.26 by December 2018, and further declining to 0.20 by the end of 2019. This reduction in leverage ratio aligns with the simultaneous decrease in total debt and the growth in total capital, indicating an improvement in the company's financial leverage and possibly reflecting a conservative approach toward debt financing.
In summary, the data reflects a strategic reduction in total debt alongside consistent growth in total capital, leading to an improved debt to capital ratio over the analyzed quarters. This suggests an enhanced financial position characterized by lower leverage and an expanded capital base, which may contribute to greater financial stability and flexibility.
Debt to Assets
EOG Resources Inc., debt to assets calculation (quarterly data)
| Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Current portion of long-term debt | |||||||||||||||||||||
| Long-term debt, excluding current portion | |||||||||||||||||||||
| Total debt | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, 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
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the eight-quarter period reveals several notable trends in the company's debt and asset management. The total debt exhibits a relatively stable pattern in the earlier periods, maintaining levels slightly below or above 6.9 billion US dollars through 2016 and the first half of 2017. A marked decrease in total debt becomes apparent starting from the third quarter of 2017, with the figure dropping from approximately 6.4 billion US dollars to about 5.2 billion US dollars by the end of 2019. This reduction indicates an active effort to deleverage and improve the financial structure.
Total assets show a consistent upward trajectory throughout the entire period, increasing from roughly 26.3 billion US dollars at the beginning of 2016 to over 37.1 billion US dollars by the end of 2019. This growth suggests ongoing investments and expansion in the company's asset base.
The debt to assets ratio steadily declines from 0.27 in early 2016 to about 0.14 by the end of 2019. This declining ratio reflects the combined effect of decreasing total debt and increasing total assets, leading to a lower proportion of debt relative to the company's asset base. The reduction in leverage signifies improved financial stability and a potentially lower risk profile.
- Total debt
- Relatively flat values around 6.9 billion US dollars until mid-2017, followed by a significant decline to about 5.2 billion US dollars by late 2019.
- Total assets
- Consistent growth from approximately 26.3 billion US dollars in early 2016 to over 37.1 billion US dollars at the end of 2019.
- Debt to assets ratio
- Steady decrease from 0.27 to 0.14 over the analyzed period, indicating reduced leverage.
In summary, the company demonstrates a strategic reduction in its debt burden alongside asset growth, resulting in enhanced leverage ratios. These trends are indicative of strengthened financial health and a more conservative capital structure as of the end of 2019.
Debt to Assets (including Operating Lease Liability)
EOG Resources Inc., debt to assets (including operating lease liability) 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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
- Total Debt (Including Operating Lease Liability)
- The total debt remained relatively stable from the first quarter of 2016 through the second quarter of 2017, fluctuating slightly around approximately 6.99 billion US dollars. Starting in the third quarter of 2017, a noticeable decrease occurred, with debt levels declining to around 6.39 billion US dollars by the end of that year. This downward trend continued with some fluctuations, reaching approximately 5.54 billion US dollars by the end of 2019. Overall, the data indicates a consistent reduction in total debt over the observed period, particularly after mid-2017.
- Total Assets
- Total assets showed a generally increasing trend over the entire period. Beginning at approximately 26.3 billion US dollars in the first quarter of 2016, the asset base experienced some volatility, including a dip in late 2016. However, from early 2017 onwards, total assets steadily increased, reaching about 37.1 billion US dollars by the end of 2019. This represents a significant growth in asset size, indicating ongoing investment or appreciation in asset values.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt-to-assets ratio exhibited a clear downward trajectory throughout the period under review. Starting at 0.27 in early 2016, this ratio gradually declined, reflecting the combined effects of decreasing debt and growing asset values. By the conclusion of 2019, the ratio had decreased to 0.15, signaling a substantial improvement in the company's leverage position. This reduction implies enhanced financial stability and potentially increased capacity for debt servicing or further borrowing if needed.
- Summary of Trends
- The financial data reveals a strategic effort to reduce leverage while expanding the asset base. The company's total debt decreased significantly after mid-2017, while total assets steadily grew over the years, resulting in a markedly lower debt-to-asset ratio. This pattern suggests an improved balance sheet quality, with less reliance on debt financing relative to the size of the company's assets. Such trends may reflect prudent financial management, favorable market conditions, or a combination of both, enhancing the company's overall financial robustness.
Financial Leverage
EOG Resources Inc., financial leverage 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) | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, 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
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several trends and developments in the company's financial position over the observed period.
- Total Assets
- Total assets demonstrated a general upward trend throughout the period from March 31, 2016, to December 31, 2019. Starting at approximately 26.3 billion US dollars, total assets experienced minor fluctuations initially but showed consistent growth, reaching over 37.1 billion US dollars by the end of 2019. This steady increase suggests ongoing asset accumulation, reflecting potential expansions, capital investments, or asset revaluations.
- Stockholders’ Equity
- Stockholders' equity also showed a positive trend over the same period. Beginning at about 12.4 billion US dollars in early 2016, equity slightly declined in the initial quarters, bottoming around 11.8 billion, before undertaking a strong and continuous increase, exceeding 21.6 billion US dollars by the final quarter of 2019. The substantial growth in equity aligns with the asset growth and indicates strengthening of the company’s net worth, likely due to retained earnings, capital infusions, or favorable market conditions.
- Financial Leverage
- Financial leverage ratios exhibited a declining pattern across the observed timeline. Starting above 2.1 in early 2016 and peaking around 2.17, the ratio gradually decreased to approximately 1.72 at the end of 2019. This reduction in leverage reflects a relative decrease in reliance on debt financing compared to equity. The trend towards lower leverage ratios suggests improved financial stability and a conservative capital structure, which may reduce risk exposure and interest burden.
In summary, the company demonstrated asset growth paired with increasing stockholders’ equity, accompanied by a declining leverage ratio. These changes indicate robust financial expansion with enhanced equity support and reduced dependency on external debt, portraying an overall strengthening in financial health over the examined quarters.
Interest Coverage
EOG Resources Inc., interest coverage 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) | |||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||
| Add: Interest expense, net | |||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, 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
Interest coverage
= (EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019
+ EBITQ1 2019)
÷ (Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019
+ Interest expenseQ1 2019)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- EBIT (Earnings Before Interest and Taxes)
- There is a clear upward trend in EBIT over the observed periods. Starting from a significant negative value of -642,578 thousand US$ in March 2016, EBIT progressively improved each quarter, turning positive by March 2017. Following this turning point, EBIT generally increased, reaching a peak of approximately 1,509,995 thousand US$ in September 2018. Although there was some fluctuation in the subsequent quarters, EBIT remained substantially positive, stabilizing around the 800,000 to 1,100,000 thousand US$ range by the end of 2019.
- Interest Expense, Net
- The net interest expense showed a moderate decline over the given periods. It started at 68,390 thousand US$ in March 2016 and gradually decreased to around 40,695 thousand US$ by December 2019. This declining trend indicates a reduction in the cost of debt or effective management of interest obligations over time.
- Interest Coverage Ratio
- The interest coverage ratio demonstrated significant improvement throughout the timeframe. Initially, the ratio was deeply negative, at -28.3 in March 2016, reflecting very low EBIT relative to interest expenses. The ratio steadily increased quarter-over-quarter, crossing into positive territory in the third quarter of 2017. By March 2018, it had reached 6.42, indicating much higher EBIT relative to interest expense. The ratio continued to improve thereafter, peaking near 20 by late 2018 and remaining strong through the end of 2019. This indicates enhanced ability to cover interest payments from operating earnings, suggesting improved financial stability.