Occidental Petroleum Corporation (OXY)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,426,000 | 984,000 | 2,764,000 | 2,008,000 | 3,032,000 |
| Short-term investments | US$ in thousands | — | — | — | 3,250,000 | 5,000 |
| Receivables | US$ in thousands | 3,195,000 | 4,300,000 | 4,208,000 | 2,115,000 | 6,373,000 |
| Total current liabilities | US$ in thousands | 9,148,000 | 7,757,000 | 8,324,000 | 8,223,000 | 12,705,000 |
| Quick ratio | 0.51 | 0.68 | 0.84 | 0.90 | 0.74 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,426,000K
+ $—K
+ $3,195,000K)
÷ $9,148,000K
= 0.51
The quick ratio of Occidental Petroleum Corp. has shown some fluctuations over the past five years. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets. In 2023, the quick ratio decreased to 0.69 from the previous year's 0.88, indicating a weaker short-term liquidity position. This decline suggests that the company may have difficulty meeting its immediate financial obligations with its quick assets.
Comparing the 2023 quick ratio to that of 2021 and 2019, where it was significantly higher at 0.99 and 0.72 respectively, it is evident that there has been some variability in Occidental's ability to cover its short-term liabilities with its liquid assets. In 2020, the quick ratio was at a relatively low point of 0.65, which could have posed liquidity challenges for the company.
Overall, the trend in Occidental Petroleum Corp.'s quick ratio indicates some volatility in its short-term liquidity position over the past five years. Stakeholders and investors may want to closely monitor the company's liquidity management strategies to ensure that it can meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023