Occidental Petroleum Corporation (OXY)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.95 1.00 1.04 0.95 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
Quick ratio 0.22 0.18 0.19 0.14 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
Cash ratio 0.22 0.18 0.19 0.14 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

Occidental Petroleum Corporation's liquidity ratios show fluctuations over the observed period. The current ratio reflects the company's ability to meet short-term obligations with its current assets. The current ratio ranged between 0.85 to 1.34, with the lowest level observed at June 30, 2020, and the highest at June 30, 2021. Generally, a current ratio above 1 indicates the company has more current assets to cover its current liabilities.

The quick ratio, measuring the company's ability to cover short-term obligations with its most liquid assets, also varied throughout the period, ranging from 0.07 to 0.82. The company experienced the lowest quick ratio at December 31, 2023, and the highest at June 30, 2021. A quick ratio above 1 is considered healthy, but fluctuations within the observed range should be further analyzed for potential liquidity concerns.

The cash ratio, which is the strictest measure of liquidity, reflects the company's ability to pay off its current liabilities with its cash and cash equivalents. Occidental Petroleum Corporation's cash ratio ranged from 0.07 to 0.82 during the period. A higher cash ratio suggests a stronger ability to cover short-term obligations with cash reserves.

Overall, while the company's liquidity ratios exhibited volatility, it is important for investors and analysts to monitor these ratios closely to assess the company's ability to meet its short-term financial obligations efficiently.

See also:

Occidental Petroleum Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 44.52 47.47 71.98 53.68 49.59 48.45 39.95 44.55 39.58 37.49 30.87 28.29 37.21 37.34 39.98 49.36 42.07 34.93 30.73 31.79

The cash conversion cycle of Occidental Petroleum Corporation has shown some fluctuations over the periods outlined in the data. The cash conversion cycle measures the time it takes for a company to convert its investments in raw materials and other inputs into cash receipts from sales.

From March 31, 2020, to December 31, 2024, the cash conversion cycle varied between a low of 28.29 days on March 31, 2022, and a high of 71.98 days on June 30, 2024. Generally, a shorter cash conversion cycle indicates that the company is able to efficiently convert its resources into cash, while a longer cycle may suggest inefficiencies in managing working capital.

Occidental Petroleum Corporation experienced a longer cash conversion cycle toward the end of 2023 and in the middle of 2024, which could be indicative of challenges in converting investments into cash receipts. However, it improved slightly by the end of 2024.

Overall, fluctuations in the cash conversion cycle should be closely monitored as they can impact the company's liquidity and operational efficiency. Efficient management of working capital is essential for sustaining long-term financial health and performance.