Occidental Petroleum Corporation (OXY)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	44.52	40.67	39.58	37.21	41.82
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	44.52	40.67	39.58	37.21	41.82

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.52 + — – —
= 44.52

The cash conversion cycle of Occidental Petroleum Corporation has shown fluctuating trends over the years. As of December 31, 2020, the company's cash conversion cycle was 41.82 days, indicating that it takes approximately 41.82 days to convert its investments in inventory into cash receipts from customers.

By December 31, 2021, Occidental Petroleum Corporation improved its cash conversion cycle to 37.21 days, suggesting a faster conversion of inventory investments into cash. However, the cycle increased to 39.58 days as of December 31, 2022, and further to 40.67 days by December 31, 2023, indicating a lengthening period in converting inventory into cash.

The trend reversed in the following year, as the cash conversion cycle increased significantly to 44.52 days by December 31, 2024, reflecting potential challenges in managing inventory and cash flow efficiently.

Overall, Occidental Petroleum Corporation should monitor and analyze its working capital management closely to ensure the effective utilization of resources and timely conversion of investments into cash, thereby optimizing its cash conversion cycle for better financial performance.