Occidental Petroleum Corporation (OXY)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	44.52	47.47	71.98	53.68	49.59	48.45	39.95	44.55	39.58	37.49	30.87	28.29	37.21	37.34	39.98	49.36	42.07	34.93	30.73	31.79
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	44.52	47.47	71.98	53.68	49.59	48.45	39.95	44.55	39.58	37.49	30.87	28.29	37.21	37.34	39.98	49.36	42.07	34.93	30.73	31.79

December 31, 2024 calculation

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

The cash conversion cycle (CCC) of Occidental Petroleum Corporation has shown some fluctuations over the periods from March 31, 2020, to December 31, 2024. The CCC indicates the number of days it takes the company to convert its resources, such as inventory and accounts receivable, into cash flow from sales.

From March 31, 2020, to September 30, 2021, the CCC ranged from around 30 to 50 days, showing relatively stable operational efficiency. However, there was an increase in the CCC by the end of 2021, reaching 37.21 days. This might suggest a delay in converting resources into cash.

In the subsequent periods, the CCC continued to fluctuate, reaching its peak at 71.98 days on June 30, 2024. A high CCC can indicate inefficiencies in managing cash flow or in the company's operations. However, the CCC decreased to 44.52 days by December 31, 2024, showing some improvement.

Overall, Occidental Petroleum Corporation should focus on monitoring and managing its cash conversion cycle effectively to ensure efficient use of resources and maintain a healthy cash flow position. Efforts to optimize inventory turnover and streamline accounts receivable processes could help in reducing the CCC and improving the company's financial performance.