Occidental Petroleum Corporation (OXY)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 2,132,000 | 1,426,000 | 984,000 | 2,764,000 | 2,008,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 3,250,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 9,521,000 | 9,148,000 | 7,757,000 | 8,324,000 | 8,223,000 |
| Quick ratio | 0.22 | 0.16 | 0.13 | 0.33 | 0.64 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,132,000K
+ $—K
+ $—K)
÷ $9,521,000K
= 0.22
The quick ratio of Occidental Petroleum Corporation has shown a decreasing trend over the last five years, starting at 0.64 in December 2020 and declining to 0.22 by December 2024. This indicates a potential liquidity concern as the company's ability to meet its short-term obligations with its most liquid assets has weakened. With a quick ratio below 1, the company may face challenges in covering its current liabilities without relying on selling inventory or obtaining additional financing. The decreasing trend suggests a declining ability to quickly convert assets to cash to meet short-term obligations, potentially increasing the company's financial risk. Management should closely monitor and address this liquidity situation to ensure the company's financial health and stability.
Peer comparison
Dec 31, 2024