Occidental Petroleum Corporation (OXY)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	8.20	8.98	9.22	9.81	8.73
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	—	—	32.45	13.76	29.88

Inventory turnover for Occidental Petroleum Corporation has seen a slight fluctuation over the years, ranging from 8.20 in 2024 to 9.81 in 2021. A higher inventory turnover indicates that the company is selling its inventory efficiently.

Receivables turnover data is not available for any of the years, implying that the company does not disclose its accounts receivable turnover. This could suggest that Occidental Petroleum may have different revenue recognition practices or does not extend credit to customers.

Payables turnover information is also not provided for any year, indicating that the company does not disclose its accounts payable turnover. This could mean that the company manages its payment terms and vendor relationships in a way that is not typically disclosed.

Working capital turnover has been variable, with a significant decrease from 29.88 in 2020 to 13.76 in 2021, followed by an increase to 32.45 in 2022. The lack of data for 2023 and 2024 restricts a comprehensive trend analysis. A higher working capital turnover ratio implies that the company is efficiently utilizing its working capital to generate sales revenue.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	44.52	40.67	39.58	37.21	41.82
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

Activity ratios help assess how efficiently a company is managing its assets. Let's analyze the activity ratios of Occidental Petroleum Corporation based on the provided data:

1. Days of Inventory on Hand (DOH):
- The DOH measures how long, on average, inventory is held before being sold. A lower number indicates that inventory is being managed efficiently.
- Occidental Petroleum Corporation's DOH has shown a general decreasing trend from 2020 to 2021, and then a slight increase in 2022 and 2023, followed by a significant jump in 2024 to 44.52 days.
- The increase in DOH in 2024 may suggest potential issues with inventory management or a buildup of unsold inventory, which could impact liquidity or profitability.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include information on DSO, which measures how long it takes for the company to collect revenue after a sale. A lower DSO indicates more efficient management of accounts receivable.

3. Number of Days of Payables:
- Similarly, the data does not include information on the number of days of payables. This ratio would have indicated how long it takes for Occidental Petroleum Corporation to pay its suppliers. A higher number of days may suggest better cash flow management.

In conclusion, based on the provided information, we can see that Occidental Petroleum Corporation's inventory management saw fluctuations in the DOH ratio, with a notable increase in 2024. However, without data on DSO and the number of days of payables, a comprehensive assessment of the company's overall efficiency in managing its working capital is limited. A more detailed analysis incorporating these additional ratios would provide a more holistic view of Occidental Petroleum Corporation's activity efficiency.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	0.62	0.43	0.27
Total asset turnover	0.31	0.38	0.50	0.35	0.22

The fixed asset turnover ratio for Occidental Petroleum Corporation has shown a consistent upward trend over the years, indicating an improvement in the company's ability to generate revenue relative to its investment in fixed assets. The ratio increased from 0.27 in 2020 to 0.62 in 2022, reflecting a more efficient utilization of fixed assets for revenue generation.

On the other hand, the total asset turnover ratio, which measures how effectively the company is generating sales from its total assets, exhibited a more fluctuating pattern. While it increased from 0.22 in 2020 to 0.50 in 2022, there was a slight decline to 0.38 in 2023 and further to 0.31 in 2024.

Overall, the increasing trend in the fixed asset turnover ratio suggests that Occidental Petroleum Corporation has been effectively utilizing its fixed assets to drive revenue growth. However, the fluctuations in the total asset turnover ratio indicate a need for further analysis to understand the company's overall efficiency in generating sales from its total asset base.