Occidental Petroleum Corporation (OXY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,132,000	1,426,000	984,000	2,764,000	2,008,000
Short-term investments	US$ in thousands	—	—	—	—	3,250,000
Total current liabilities	US$ in thousands	9,521,000	9,148,000	7,757,000	8,324,000	8,223,000
Cash ratio		0.22	0.16	0.13	0.33	0.64

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,132,000K + $—K) ÷ $9,521,000K
= 0.22

The cash ratio of Occidental Petroleum Corporation has shown a declining trend over the years, starting at 0.64 on December 31, 2020, and decreasing to 0.33 on December 31, 2021, indicating a reduction in the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

Despite a slight improvement to 0.16 on December 31, 2023, the cash ratio still remained low. By the end of December 31, 2024, there was a noticeable increase to 0.22, signaling a partial recovery in the company's liquidity position. However, it is important to note that the cash ratio is below 1 for all the years presented, suggesting that Occidental Petroleum Corporation may have difficulty meeting its short-term obligations solely with its cash reserves.

Further assessment of the company's cash management and liquidity strategies may be warranted to enhance its ability to weather financial uncertainties and meet its financial obligations promptly.