Occidental Petroleum Corporation (OXY)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	17,175,000	17,491,000	14,264,000	14,490,000	14,884,000	14,879,000	18,467,000	18,935,000	18,989,000	18,857,000	18,491,000	18,138,000	18,106,000	17,329,000	16,770,000	16,068,000	16,468,000	17,344,000	17,546,000	16,486,000
Inventory	US$ in thousands	2,095,000	2,275,000	2,813,000	2,131,000	2,022,000	1,975,000	2,021,000	2,311,000	2,059,000	1,937,000	1,564,000	1,406,000	1,846,000	1,773,000	1,837,000	2,173,000	1,898,000	1,660,000	1,477,000	1,436,000
Inventory turnover		8.20	7.69	5.07	6.80	7.36	7.53	9.14	8.19	9.22	9.74	11.82	12.90	9.81	9.77	9.13	7.39	8.68	10.45	11.88	11.48

December 31, 2024 calculation

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

Occidental Petroleum Corporation's inventory turnover has experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio is an efficiency ratio that measures how many times a company's inventory is sold and replaced over a certain period. A higher inventory turnover ratio generally indicates that a company is effectively managing its inventory levels.

In this case, the trend in Occidental Petroleum Corporation's inventory turnover shows some variations. The inventory turnover ratio started at 11.48 on March 31, 2020, and fluctuated throughout the years. It reached its peak at 12.90 on March 31, 2022, before declining gradually to 5.07 on June 30, 2024. The ratio then increased to 8.20 by December 31, 2024.

The decreasing trend from 2022 to 2024 suggests that Occidental Petroleum Corporation may have experienced challenges in managing its inventory efficiently during this period. A lower inventory turnover ratio could indicate overstocking or obsolete inventory issues, leading to potential storage costs and liquidity challenges.

Overall, a thorough analysis of the factors impacting Occidental Petroleum Corporation's inventory turnover, such as production levels, demand fluctuations, and supply chain efficiency, would be necessary to better understand the company's inventory management performance and its implications for financial health.