Occidental Petroleum Corporation (OXY)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	8.84	7.98	11.07	10.85	8.52	9.08	5.27	5.34	6.17	6.34	5.94	5.41	8.42	9.73	9.34	9.57	3.28	3.44	3.54	3.46
Payables turnover	1.35	1.13	1.28	1.31	1.16	1.27	0.89	0.96	1.07	1.02	1.01	3.58	4.58	5.94	5.60	2.34	1.67	1.39	1.41	1.19
Working capital turnover	—	—	—	50.58	32.45	44.63	49.75	21.36	13.76	28.72	5.99	11.43	29.88	104.52	—	10.96	10.85	3.87	12.10	10.59

The activity ratios of Occidental Petroleum Corp. provide insights into the efficiency of the company's operations in managing its resources.

1. Inventory turnover: This ratio indicates how many times the company's inventory is sold and replaced over a period. Occidental Petroleum's inventory turnover has been relatively stable around 1.5 in recent quarters, suggesting moderate efficiency in managing its inventory levels.

2. Receivables turnover: This ratio measures how quickly the company collects payments from its customers. Occidental Petroleum's receivables turnover has shown fluctuations, with a significant increase in Q2 2023 compared to previous quarters. This indicates that the company improved its collection efficiency during that period.

3. Payables turnover: The payables turnover ratio reflects how efficiently the company pays its suppliers. Occidental Petroleum's payables turnover has also been relatively stable over the quarters, indicating a consistent payment strategy with suppliers.

4. Working capital turnover: This ratio indicates how effectively the company generates revenue from its working capital. The significant increase in Q1 2023 compared to previous quarters suggests that Occidental Petroleum improved its ability to generate revenue relative to its working capital during that period.

Overall, the analysis of these activity ratios suggests that Occidental Petroleum Corp. has maintained a stable performance in managing its inventory, accounts receivables, and accounts payables, with improvements in working capital efficiency evident in certain quarters.

Average number of days

		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
Days of inventory on hand (DOH)	days	149.40	163.06	161.52	183.73	160.45	149.28	122.77	114.99	161.00	170.39	186.67	64.77	50.62	38.04	31.70	58.21	70.21	61.88	75.14	86.79
Days of sales outstanding (DSO)	days	41.27	45.76	32.99	33.63	42.84	40.19	69.26	68.37	59.17	57.54	61.48	67.43	43.35	37.50	39.09	38.14	111.24	106.12	102.97	105.59
Number of days of payables	days	269.39	322.65	284.28	279.37	313.96	286.31	407.94	381.44	340.06	356.83	360.12	101.82	79.66	61.45	65.13	155.85	218.05	262.42	258.61	307.69

The activity ratios of Occidental Petroleum Corp. indicate the efficiency of the company in managing its inventory, receivables, and payables.

The Days of Inventory on Hand (DOH) measures how many days, on average, the company holds its inventory before selling it. Occidental's DOH has been fluctuating over the quarters, with a peak in Q1 2023 at 263.60 days and a low in Q2 2022 at 171.29 days. This suggests that the company may have experienced challenges in inventory management, especially in Q1 2023.

The Days of Sales Outstanding (DSO) ratio indicates the average number of days it takes for the company to collect payments from its customers after making a sale. Occidental's DSO has varied, with a significant decrease from Q2 2022 to Q3 2022, followed by fluctuations in subsequent quarters. The lower the DSO, the better the company's efficiency in collecting receivables.

The Number of Days of Payables ratio shows how many days, on average, the company takes to pay its suppliers. Occidental's payables period has also shown fluctuations, with a notable increase in Q2 2022 to 601.24 days, and a decrease in the following quarters. A longer payables period can indicate a strategic delay in payments to manage cash flow.

Overall, Occidental Petroleum Corp. may need to focus on improving its inventory management to reduce holding costs and streamline its collection process to enhance cash flow efficiency. Monitoring and optimizing these activity ratios can help the company enhance its operational performance and financial health.

Long-term

	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
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
Total asset turnover	0.38	0.41	0.44	0.50	0.50	0.50	0.45	0.39	0.35	0.29	0.24	0.21	0.22	0.24	0.25	0.23	0.20	0.16	0.42	0.41

Long-term activity ratios provide insight into how effectively Occidental Petroleum Corp. is utilizing its assets to generate sales over an extended period.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate sales from its fixed assets (property, plant, and equipment). Occidental Petroleum Corp.'s fixed asset turnover has been decreasing gradually over the past quarters from 0.63 in Q4 2022 to 0.48 in Q4 2023. This indicates that the company is generating fewer sales from its fixed assets, which could be due to factors such as underutilization of assets or a decline in operational efficiency.

2. Total Asset Turnover: This ratio reflects how efficiently the company is using all its assets to generate sales. Occidental Petroleum Corp.'s total asset turnover has been fluctuating but relatively stable, ranging from 0.39 in Q1 2022 to 0.50 in Q4 2022. The decrease to 0.38 in Q4 2023 suggests a decline in the company's overall efficiency in generating sales from its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios indicate a trend of decreasing efficiency in generating sales from assets over the quarters analyzed. This could raise concerns about Occidental Petroleum Corp.'s operational performance and the need to improve asset utilization to enhance profitability.