Occidental Petroleum Corporation (OXY)

Liquidity ratios

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
Current ratio 0.92 0.92 1.00 1.09 1.15 1.10 1.07 1.16 1.23 1.08 1.34 1.17 1.07 1.02 0.85 1.18 1.15 1.33 1.20 1.23
Quick ratio 0.51 0.48 0.45 0.60 0.68 0.66 0.80 0.84 0.84 0.61 1.16 0.98 0.90 0.38 0.34 0.37 0.74 0.68 0.89 0.94
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

Occidental Petroleum Corp.'s liquidity ratios, including the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations.

The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown some fluctuation over the past eight quarters. The ratio has generally been above 1, indicating that, as of the most recent quarter (Q4 2023), Occidental Petroleum Corp. had more current assets than current liabilities. However, the ratio dropped to 0.92 in the last two quarters, indicating a potential strain on liquidity.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Occidental Petroleum Corp.'s quick ratio has also exhibited variability but has generally been below 1, implying that the company may have difficulty meeting its short-term obligations without relying on inventory or other less liquid assets.

The cash ratio, the most conservative measure of liquidity, focuses solely on cash and cash equivalents relative to current liabilities. Occidental Petroleum Corp.'s cash ratio has fluctuated significantly over the quarters, ranging from 0.26 to 0.37. The ratio was at its lowest in Q2 2022 at 0.26, indicating a lower level of cash on hand to cover immediate liabilities.

Overall, Occidental Petroleum Corp.'s liquidity ratios suggest that the company may be facing some challenges in terms of liquidity management and may need to closely monitor its cash position to ensure it can meet its short-term obligations.

See also:

Occidental Petroleum Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days -78.72 -113.83 -89.77 -62.01 -110.67 -96.84 -215.92 -198.09 -119.88 -128.90 -111.97 30.37 14.30 14.08 5.67 -59.50 -36.60 -94.42 -80.51 -115.30

The cash conversion cycle of Occidental Petroleum Corp. has shown fluctuation over the past eight quarters. The company's cash conversion cycle ranged from a low of -189.18 days in Q3 2023 to a high of -328.55 days in Q1 2022.

A negative cash conversion cycle indicates that the company is efficiently managing its working capital, resulting in cash being received from customers before the company pays its suppliers. Occidental Petroleum Corp. has generally maintained a negative cash conversion cycle, which is a positive sign of its operational efficiency.

However, the fluctuation in the cash conversion cycle over the quarters suggests possible variability in the company's receivables, inventory, and payables management. Occidental Petroleum Corp. may benefit from further streamlining its working capital processes to maintain a more consistent and optimized cash conversion cycle.