Occidental Petroleum Corporation (OXY)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	17,175,000	18,148,000	18,989,000	18,106,000	16,565,000
Inventory	US$ in thousands	2,095,000	2,022,000	2,059,000	1,846,000	1,898,000
Inventory turnover		8.20	8.98	9.22	9.81	8.73

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $17,175,000K ÷ $2,095,000K
= 8.20

Occidental Petroleum Corporation's inventory turnover has exhibited a relatively stable trend over the period from December 31, 2020, to December 31, 2024. The inventory turnover ratio measures the efficiency of inventory management, indicating how many times the company's inventory is sold and replaced during a specific period.

The inventory turnover for Occidental Petroleum Corporation increased from 8.73 times on December 31, 2020, to 9.81 times on December 31, 2021, showing an improvement in the utilization of inventory. However, there was a slight decrease to 9.22 times on December 31, 2022, followed by a further decline to 8.98 times on December 31, 2023. The ratio then decreased to 8.20 times by December 31, 2024.

A higher inventory turnover ratio typically indicates that the company is efficiently managing its inventory levels and is able to sell its products more quickly. Conversely, a decreasing trend in inventory turnover may suggest potential issues with sales, obsolete inventory, or overstocking.

Overall, the fluctuation in Occidental Petroleum Corporation's inventory turnover ratio over the period indicates varying levels of efficiency in managing its inventory. Further analysis of the company's operational strategies and market conditions could help provide insights into the factors influencing these changes.