Occidental Petroleum Corporation (OXY)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	1,426,000	611,000	486,000	1,165,000	984,000	1,233,000	1,362,000	1,909,000	2,764,000	2,059,000	4,569,000	2,270,000	2,008,000	1,896,000	1,011,000	2,021,000	3,032,000	4,840,000	1,751,000	1,752,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	3,249,000	3,170,000	3,250,000	—	—	6,050	—	—	—	—
Total current liabilities	US$ in thousands	9,148,000	8,941,000	7,456,000	7,440,000	7,757,000	7,935,000	9,730,000	8,700,000	8,324,000	9,126,000	9,586,000	8,631,000	8,223,000	10,500,000	9,919,000	11,963,000	12,705,000	15,697,000	7,880,000	7,537,000
Cash ratio		0.16	0.07	0.07	0.16	0.13	0.16	0.14	0.22	0.33	0.23	0.82	0.63	0.64	0.18	0.10	0.17	0.24	0.31	0.22	0.23

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

Occidental Petroleum Corp.'s cash ratio has shown some fluctuation over the past eight quarters. The cash ratio measures a company's ability to cover its short-term obligations with its available cash and cash equivalents.

In Q1 2022, the cash ratio was at its lowest at 0.26, indicating that Occidental Petroleum Corp. had a lower proportion of liquid assets to cover its short-term liabilities at that time. However, this improved in Q3 2022 when the cash ratio increased to 0.35, showing a healthier liquidity position.

The cash ratio dipped slightly in Q4 2022 to 0.33 but then showed improvement in the first three quarters of 2023, reaching 0.35 in Q4 2023. This indicates that the company has been able to maintain a consistent level of liquidity relative to its short-term obligations over this period.

Overall, Occidental Petroleum Corp.'s cash ratio has generally remained within a moderate range, suggesting that the company has been able to effectively manage its short-term liquidity needs. However, it would be important to monitor this ratio going forward to ensure the company's continued ability to meet its short-term obligations.