Occidental Petroleum Corporation (OXY)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	28,257,000	29,304,000	31,536,000	35,510,000	36,634,000	36,328,000	33,730,000	29,012,000	25,956,000	22,203,000	19,519,000	16,489,000	17,809,000	20,277,000	22,028,000	23,520,000	20,911,000	20,294,000	18,692,000	18,355,000
Property, plant and equipment	US$ in thousands	57,791,000	58,270,000	58,341,000	58,169,000	57,698,000	58,271,000	58,573,000	59,229,000	59,349,000	60,644,000	61,846,000	64,073,000	65,889,000	68,421,000	72,604,000	79,073,000	82,230,000	90,121,000	32,115,000	31,900,000
Fixed asset turnover		0.49	0.50	0.54	0.61	0.63	0.62	0.58	0.49	0.44	0.37	0.32	0.26	0.27	0.30	0.30	0.30	0.25	0.23	0.58	0.58

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $28,257,000K ÷ $57,791,000K
= 0.49

The fixed asset turnover ratio measures a company's ability to generate revenue from its investments in fixed assets, such as property, plant, and equipment. Occidental Petroleum Corp.'s fixed asset turnover has shown some fluctuations over the past eight quarters.

The trend in the fixed asset turnover ratio for Occidental Petroleum Corp. has been somewhat declining, starting at 0.49 in Q1 2022 and reaching a low of 0.48 in Q4 2023. This indicates that the company is less efficient in utilizing its fixed assets to generate revenue compared to the earlier periods.

While there was a slight increase in the fixed asset turnover ratio from Q2 2023 to Q3 2023, the overall trend still shows a decrease. The ratio remained relatively stable in the range of 0.58 to 0.63 from Q4 2022 to Q1 2023, before declining again in the following quarters.

The declining trend in the fixed asset turnover ratio may suggest inefficiencies in the company's asset utilization or changes in its asset base that are impacting revenue generation. Occidental Petroleum Corp. may need to assess its asset management strategies to improve efficiency and maximize returns on its fixed asset investments.