Occidental Petroleum Corporation (OXY)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 28,257,000 | 36,634,000 | 25,956,000 | 17,809,000 | 20,911,000 |
| Receivables | US$ in thousands | 3,195,000 | 4,300,000 | 4,208,000 | 2,115,000 | 6,373,000 |
| Receivables turnover | 8.84 | 8.52 | 6.17 | 8.42 | 3.28 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $28,257,000K ÷ $3,195,000K
= 8.84
Occidental Petroleum Corp.'s receivables turnover ratio has shown fluctuations over the past five years. The ratio increased from 3.20 in 2019 to 8.42 in 2020, demonstrating a significant improvement in the company's ability to convert its accounts receivable into cash within a given period. In 2021, there was a slight decrease in the receivables turnover to 6.17, indicating a potential elongation in the collection period for receivables.
However, in 2022 and 2023, the receivables turnover ratio rebounded and improved further to 8.56 and 8.84, respectively. These high turnover ratios suggest that Occidental Petroleum Corp. efficiently collects payments from its credit sales, potentially implying effective credit management or a stronger customer base.
Overall, the upward trend in receivables turnover ratios indicates an enhanced efficiency in managing accounts receivable and converting them into cash, which can have positive implications for the company's cash flow and liquidity position.
Peer comparison
Dec 31, 2023