Occidental Petroleum Corporation (OXY)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,375,000 | 8,886,000 | 10,211,000 | 8,819,000 | 14,633,000 |
| Total current liabilities | US$ in thousands | 9,148,000 | 7,757,000 | 8,324,000 | 8,223,000 | 12,705,000 |
| Current ratio | 0.92 | 1.15 | 1.23 | 1.07 | 1.15 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,375,000K ÷ $9,148,000K
= 0.92
The current ratio of Occidental Petroleum Corp. has shown fluctuations over the past five years. In 2023, the current ratio decreased to 0.92 from 1.15 in 2022, indicating a decline in the company's liquidity position. This could be a cause for concern as it suggests that Occidental Petroleum may have difficulty meeting its short-term obligations with its current assets.
Comparing the current ratio of 2023 to that of 2021 and 2019, where it was 1.23 and 1.25 respectively, it is evident that the company's liquidity has deteriorated over time. However, in 2020, the current ratio was 1.07, suggesting a temporary dip in liquidity that was subsequently improved in the following year.
Overall, the downward trend in the current ratio of Occidental Petroleum Corp. signifies a potential risk in the company's ability to cover its short-term liabilities with its current assets. Management may need to closely monitor and address the factors contributing to this decline to ensure the company's financial stability in the future.
Peer comparison
Dec 31, 2023