Occidental Petroleum Corporation (OXY)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,940,000	4,684,000	4,185,000	3,870,000	6,840,000
Inventory	US$ in thousands	2,022,000	2,059,000	1,846,000	1,898,000	1,581,000
Inventory turnover		2.44	2.27	2.27	2.04	4.33

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,940,000K ÷ $2,022,000K
= 2.44

Occidental Petroleum Corp.'s inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times a company sells and replaces its inventory during a specific period.

The trend in Occidental Petroleum Corp.'s inventory turnover ratio from 2019 to 2023 appears to be somewhat inconsistent. In 2019, the company's inventory turnover was relatively high at 1.93, which suggests that the company was efficiently managing its inventory by selling and replacing it almost twice during the year. However, in 2020, the inventory turnover ratio decreased to 1.27, indicating a slowdown in the inventory turnover rate, which could be a sign of excess inventory or inefficiencies in managing inventory levels.

In the following years, Occidental Petroleum Corp. managed to improve its inventory turnover ratio, reaching 1.54 in 2023. This improvement shows that the company may have implemented better inventory management practices to increase the speed at which it sells and replaces inventory. Overall, while there have been fluctuations, the company's effort to enhance inventory turnover is evident, which could lead to improved liquidity and profitability in the long run.