Occidental Petroleum Corporation (OXY)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	4,940,000	4,421,000	4,567,000	4,591,000	4,684,000	4,736,000	4,650,000	4,463,000	4,185,000	3,798,000	3,592,000	12,245,000	13,686,000	15,930,000	17,004,000	9,005,000	8,219,000	9,443,000	7,685,000	6,241,000
Inventory	US$ in thousands	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	1,581,000	1,601,000	1,582,000	1,484,000
Inventory turnover		2.44	2.24	2.26	1.99	2.27	2.45	2.97	3.17	2.27	2.14	1.96	5.64	7.21	9.60	11.51	6.27	5.20	5.90	4.86	4.21

December 31, 2023 calculation

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

Occidental Petroleum Corp.'s inventory turnover has varied over the past eight quarters. The inventory turnover ratio measures the efficiency of a company in managing its inventory levels.

The trend of Occidental Petroleum's inventory turnover ratio indicates that the company has experienced a decline in inventory turnover from Q2 2022 to Q1 2023. This suggests that the company is taking longer to sell its inventory, which may result in higher holding costs and potential obsolescence risks.

Although there was a slight increase in Q4 2023 compared to the previous quarter, the overall downward trend in inventory turnover over the past two years is a cause for concern. A low inventory turnover ratio can indicate inefficiencies in inventory management, overstocking, or challenges in selling products.

Management should closely monitor and address the factors contributing to the declining inventory turnover to ensure optimal inventory management practices and improve the company's overall financial performance.