Occidental Petroleum Corporation (OXY)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 28,257,000 | 36,634,000 | 25,956,000 | 17,809,000 | 20,911,000 |
| Property, plant and equipment | US$ in thousands | 57,791,000 | 57,698,000 | 59,349,000 | 65,889,000 | 82,230,000 |
| Fixed asset turnover | 0.49 | 0.63 | 0.44 | 0.27 | 0.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $28,257,000K ÷ $57,791,000K
= 0.49
The fixed asset turnover ratio for Occidental Petroleum Corp. has shown fluctuations over the past five years. In 2023, the ratio stands at 0.48, indicating that the company generated $0.48 in revenue for each dollar invested in fixed assets. This represents a decrease from the previous year's ratio of 0.63.
The trend in fixed asset turnover suggests that the company's efficiency in utilizing its fixed assets to generate revenue has varied significantly. The ratio was relatively low in 2020 and 2019 at 0.27 and 0.25, respectively, indicating potential inefficiencies in asset utilization during those years.
While the 2021 ratio of 0.43 showed some improvement, the recent decrease in 2023 raises concerns about the company's ability to efficiently generate revenue from its fixed assets. Further analysis of Occidental Petroleum Corp.'s operational efficiency and asset management practices is warranted to understand the factors driving these fluctuations in fixed asset turnover.
Peer comparison
Dec 31, 2023