Occidental Petroleum Corporation (OXY)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,426,000	984,000	2,764,000	2,008,000	3,032,000
Short-term investments	US$ in thousands	—	—	—	3,250,000	5,000
Total current liabilities	US$ in thousands	9,148,000	7,757,000	8,324,000	8,223,000	12,705,000
Cash ratio		0.16	0.13	0.33	0.64	0.24

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,426,000K + $—K) ÷ $9,148,000K
= 0.16

The cash ratio of Occidental Petroleum Corp. has varied over the past five years. In 2023, the cash ratio was 0.35, a slight increase from the previous year's 0.33. This indicates that the company had $0.35 of cash and cash equivalents for every $1 of current liabilities.

Comparing this to 2021, where the cash ratio was higher at 0.49, we observe a decrease in liquidity in 2023. Despite this decline, the company's liquidity position in 2023 remains better than in 2019 when the cash ratio was 0.29.

Overall, the cash ratio of Occidental Petroleum Corp. has fluctuated, but the company has maintained a reasonable level of liquidity, which is essential for meeting its short-term obligations.