Occidental Petroleum Corporation (OXY)

Quick ratio

		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	US$ in thousands	1,426,000	611,000	486,000	1,165,000	984,000	1,233,000	1,362,000	1,909,000	2,764,000	2,059,000	4,569,000	2,270,000	2,008,000	1,896,000	1,011,000	2,021,000	3,032,000	4,840,000	1,751,000	1,752,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	3,249,000	3,170,000	3,250,000	—	—	6,050	—	—	—	—
Receivables	US$ in thousands	3,195,000	3,674,000	2,850,000	3,272,000	4,300,000	4,000,000	6,400,000	5,434,000	4,208,000	3,500,000	3,288,000	3,046,000	2,115,000	2,083,000	2,359,000	2,458,000	6,373,000	5,900,000	5,273,000	5,310,000
Total current liabilities	US$ in thousands	9,148,000	8,941,000	7,456,000	7,440,000	7,757,000	7,935,000	9,730,000	8,700,000	8,324,000	9,126,000	9,586,000	8,631,000	8,223,000	10,500,000	9,919,000	11,963,000	12,705,000	15,697,000	7,880,000	7,537,000
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

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 exhibited a declining trend over the past few quarters. From a high of 0.99 in Q1 2022, the quick ratio has decreased steadily to 0.69 in Q4 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over time.

A quick ratio below 1.0 suggests that Occidental Petroleum Corp. may have difficulty covering its current liabilities with its quick assets alone. This could potentially signal liquidity challenges for the company, as it may struggle to meet its short-term financial obligations without relying on other sources of funding.

It is crucial for investors and analysts to monitor Occidental Petroleum Corp.'s quick ratio closely to assess its liquidity position and financial health. Further analysis and investigation into the company's cash flow management and working capital practices may be necessary to understand the factors contributing to the declining quick ratio.