Analysis of Long-term (Investment) 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.
Long-term Activity Ratios (Summary)
EOG Resources Inc., long-term (investment) 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 financial ratios reviewed demonstrate consistent trends over the examined periods, reflecting changes in asset utilization and equity efficiency.
- Net Fixed Asset Turnover
- This ratio reveals a steady upward trend from March 2016 through December 2019. Initially starting at 0.33, it experienced a gradual increase, reaching a peak of 0.62 by December 2018 before slightly declining to 0.57 by the end of 2019. The growth suggests improved efficiency in generating revenue from net fixed assets during the period, with minor fluctuations towards the latter part.
- Total Asset Turnover
- Total asset turnover followed a similar positive trajectory overall, commencing at 0.30 in the first quarter of 2016 and rising to a high of 0.51 in December 2018. This improvement indicates a general enhancement in how effectively the company utilized its total assets to generate sales. However, a slight decrease to 0.47 by the end of 2019 denotes a marginal reduction in asset efficiency during the latest quarter.
- Equity Turnover
- The equity turnover ratio exhibited increased variability but maintained an overall upward direction. Beginning at 0.63 in early 2016, the ratio peaked at 0.89 in December 2018 and June 2019, suggesting more effective use of shareholders' equity to produce revenue. Towards the end of 2019, the ratio decreased to 0.80, representing a slight decline yet remaining higher than the initial levels.
In summary, the company showed progressive improvements in utilizing both fixed and total assets to generate revenues over the four-year span. Equity turnover also improved significantly, despite some fluctuations. The marginal declines observed in the final quarters suggest the need for continued monitoring of operational efficiency.
Net Fixed Asset Turnover
EOG Resources Inc., net fixed asset 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 | 4,320,246) | 4,303,455) | 4,697,630) | 4,058,642) | 4,574,536) | 4,781,624) | 4,238,077) | 3,681,162) | 3,340,439) | 2,644,844) | 2,612,472) | 2,610,565) | 2,402,039) | 2,118,504) | 1,775,740) | 1,354,349) | |||||
| Property, plant and equipment, net | 30,364,595) | 30,204,322) | 29,724,431) | 29,129,003) | 28,075,519) | 27,947,741) | 27,153,795) | 26,375,648) | 25,665,037) | 25,724,589) | 25,580,160) | 25,606,460) | 25,707,078) | 22,644,385) | 23,212,879) | 23,801,433) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 0.57 | 0.58 | 0.61 | 0.61 | 0.62 | 0.57 | 0.51 | 0.47 | 0.44 | 0.40 | 0.38 | 0.35 | 0.30 | 0.31 | 0.31 | 0.33 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset 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
Net fixed asset turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Property, plant and equipment, net
= (4,320,246 + 4,303,455 + 4,697,630 + 4,058,642)
÷ 30,364,595 = 0.57
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and patterns over the examined periods. The company’s operating revenues and other income demonstrate a general upward trajectory from early 2016 through most of 2018, with revenues increasing from approximately 1.35 billion US dollars in the first quarter of 2016 to a peak exceeding 4.7 billion US dollars in the third quarter of 2018. This growth period is characterized by consistent quarterly increases, with occasional slight fluctuations observed towards the end of 2018 and into 2019, where revenues exhibit some variability but remain generally elevated relative to the earlier years.
Concerning property, plant, and equipment (PP&E), net values exhibit a gradual overall increase from just over 23.8 billion US dollars at the beginning of 2016 to more than 30.3 billion US dollars by the end of 2019. This growth in net fixed assets indicates ongoing capital investment and asset accumulation. The asset base experienced minor fluctuations within some quarters but did not see any significant declines, maintaining a steady upward trend that supports operational capacity expansion or maintenance.
The net fixed asset turnover ratio, which measures operational efficiency by comparing revenues to net fixed assets, shows an increasing trend from 0.33 in early 2016 to a peak of 0.62 towards the end of 2018. This upward trend suggests improving efficiency in utilizing fixed assets to generate revenues during this timeframe. However, from early 2019 through the end of 2019, this ratio shows a slight decline and subsequent stabilization around 0.57 to 0.61. This modest reduction may indicate a leveling off in asset utilization efficiency, possibly due to the increased capital base not yet fully translating into proportional revenue growth or reflecting market or operational constraints.
In summary, the company experienced significant revenue growth from 2016 through 2018 alongside expanding asset investments. Operational efficiency, as reflected by net fixed asset turnover, improved markedly through 2018 before showing signs of stabilizing or a mild decline in 2019. This pattern suggests that while asset investments have increased, the effectiveness in generating revenue from these assets may be reaching a plateau in the short term.
Total Asset Turnover
EOG Resources Inc., total asset 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 | 4,320,246) | 4,303,455) | 4,697,630) | 4,058,642) | 4,574,536) | 4,781,624) | 4,238,077) | 3,681,162) | 3,340,439) | 2,644,844) | 2,612,472) | 2,610,565) | 2,402,039) | 2,118,504) | 1,775,740) | 1,354,349) | |||||
| Total assets | 37,124,608) | 36,542,269) | 35,751,501) | 35,663,535) | 33,934,474) | 33,637,736) | 32,092,380) | 30,740,517) | 29,833,078) | 28,805,305) | 29,263,617) | 29,211,974) | 29,459,433) | 25,554,921) | 25,830,538) | 26,338,423) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.47 | 0.48 | 0.51 | 0.49 | 0.51 | 0.48 | 0.43 | 0.40 | 0.38 | 0.36 | 0.33 | 0.30 | 0.26 | 0.28 | 0.27 | 0.30 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset 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
Total asset turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Total assets
= (4,320,246 + 4,303,455 + 4,697,630 + 4,058,642)
÷ 37,124,608 = 0.47
2 Click competitor name to see calculations.
- Operating Revenues and Other
- The operating revenues exhibited an overall upward trend from Q1 2016 through Q4 2019. Starting at approximately 1.35 billion USD in March 2016, revenues consistently increased with some fluctuations, reaching a peak exceeding 4.7 billion USD in Q3 2018. There was a slight decline in Q4 2018 and Q1 2019, followed by recovery and stabilization around the 4.3 to 4.7 billion USD range by the end of 2019. This trend indicates a significant growth in revenue generation capacity over the four years.
- Total Assets
- Total assets remained relatively stable during 2016, fluctuating slightly around 25.5 to 29.5 billion USD. From 2017 onwards, there was a gradual increase, reaching approximately 37.1 billion USD by the end of 2019. This steady growth in assets reflects continuous asset accumulation or appreciation, supporting expanded operational capabilities.
- Total Asset Turnover
- The total asset turnover ratio showed consistent improvement over the entire period. Starting at 0.3 in Q1 2016, the ratio declined slightly during the middle of 2016, reaching a low of 0.26 in Q4 2016. From 2017 onwards, the ratio rose steadily, peaking at 0.51 in Q4 2018 and maintaining a level close to 0.47 to 0.51 through 2019. This increase in asset turnover suggests enhanced efficiency in generating revenues from assets, indicating improved operational productivity.
- Summary of Trends and Insights
- Overall, there is a clear upward trajectory in operating revenues and asset base, reflecting expansion and growth. The improvement in total asset turnover demonstrates better utilization of assets to generate revenues. Despite some short-term fluctuations in revenues, the sustained increase in asset efficiency points to effective management of resources. The data imply a strengthening operational performance with scalable asset investment over the observed periods.
Equity Turnover
EOG Resources Inc., equity 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 | 4,320,246) | 4,303,455) | 4,697,630) | 4,058,642) | 4,574,536) | 4,781,624) | 4,238,077) | 3,681,162) | 3,340,439) | 2,644,844) | 2,612,472) | 2,610,565) | 2,402,039) | 2,118,504) | 1,775,740) | 1,354,349) | |||||
| Stockholders’ equity | 21,640,716) | 21,124,280) | 20,630,276) | 19,903,797) | 19,364,188) | 18,538,470) | 17,452,394) | 16,840,639) | 16,283,273) | 13,922,264) | 13,901,715) | 13,928,231) | 13,981,581) | 11,798,312) | 12,056,701) | 12,405,488) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 0.80 | 0.83 | 0.88 | 0.89 | 0.89 | 0.87 | 0.80 | 0.73 | 0.69 | 0.74 | 0.70 | 0.64 | 0.55 | 0.60 | 0.59 | 0.63 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity 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
Equity turnover
= (Operating revenues and otherQ4 2019
+ Operating revenues and otherQ3 2019
+ Operating revenues and otherQ2 2019
+ Operating revenues and otherQ1 2019)
÷ Stockholders’ equity
= (4,320,246 + 4,303,455 + 4,697,630 + 4,058,642)
÷ 21,640,716 = 0.80
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable patterns in operating revenues, stockholders’ equity, and equity turnover ratios over the observed periods.
- Operating Revenues and Other
- Operating revenues demonstrated a consistent upward trend from March 2016 through December 2018, increasing from approximately 1.35 billion US dollars to a peak near 4.78 billion US dollars. This growth indicates strong revenue expansion during this period. However, starting in March 2019, there is a noticeable decline in revenues, dropping to about 4.06 billion US dollars, followed by some recovery in the subsequent quarters but not reaching the previous peak level.
- Stockholders’ Equity
- Stockholders’ equity showed a somewhat fluctuating but overall increasing trend throughout the entire timeframe. Initially, there was a decline from around 12.41 billion US dollars in March 2016 to approximately 11.80 billion US dollars in September 2016. Subsequently, equity increased steadily with some variation, reaching over 21.64 billion US dollars by December 2019. This steady rise after the initial dip suggests continued reinvestment or retained earnings accumulation contributing to growth in the equity base.
- Equity Turnover
- The equity turnover ratio, which measures revenue generated per unit of equity, displayed moderate volatility but an overall rising trajectory from 0.63 in March 2016 to a high of 0.89 in December 2018 and March 2019. This increase implies improved efficiency in utilizing equity to generate revenues during this period. However, a slight decrease is observed towards the end of 2019, dropping to 0.80, suggesting a mild reduction in this efficiency metric.
In summary, the company's financial data indicate a strong revenue growth phase until late 2018, accompanied by an expanding equity base and increasing equity turnover, which reflects improved operational efficiency. The decline in revenues in early 2019, despite the continued growth in equity, and the subsequent decrease in equity turnover ratio may warrant further examination to understand underlying factors influencing these shifts.