Occidental Petroleum Corporation (OXY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.73% | 35.78% | 48.17% | 30.24% | 6.99% |
| Operating profit margin | 20.93% | 21.14% | 39.88% | 21.04% | -4.32% |
| Pretax margin | 15.23% | 22.75% | 38.54% | 14.27% | -88.19% |
| Net profit margin | 8.89% | 16.62% | 36.32% | 8.95% | -75.99% |
Occidental Petroleum Corporation has shown significant improvement in its profitability ratios over the five-year period from 2020 to 2024.
1. Gross Profit Margin: The company's gross profit margin has increased consistently from 6.99% in 2020 to 35.73% in 2024. This indicates that Occidental Petroleum has been able to effectively control its production and operating costs relative to its revenues, which is a positive sign for its operational efficiency.
2. Operating Profit Margin: The operating profit margin also saw a notable improvement, moving from a negative percentage of -4.32% in 2020 to 20.93% in 2024. This demonstrates the company's ability to generate profits from its core business activities after accounting for all operating expenses.
3. Pretax Margin: The pretax margin reflects the company's profitability before accounting for taxes. Occidental Petroleum's pretax margin increased consistently from -88.19% in 2020 to 15.23% in 2024. This signifies that the company has been able to manage its costs and expenses effectively, leading to stronger pre-tax profitability.
4. Net Profit Margin: The net profit margin, which reflects the company's profitability after all expenses including taxes, showed a similar trend of improvement. It rose from -75.99% in 2020 to 8.89% in 2024. This indicates that the company's bottom line performance has become more positive over the years.
In conclusion, Occidental Petroleum Corporation has demonstrated significant progress in its profitability ratios over the five-year period, indicating improved efficiency in cost management and overall financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.55% | 8.07% | 20.12% | 7.28% | -0.96% |
| Return on assets (ROA) | 2.78% | 6.35% | 18.32% | 3.09% | -16.90% |
| Return on total capital | 15.35% | 24.38% | 50.07% | 26.17% | -76.89% |
| Return on equity (ROE) | 6.96% | 15.52% | 44.22% | 11.42% | -72.86% |
Occidental Petroleum Corporation's profitability ratios show a mixed performance over the years.
- Operating return on assets (Operating ROA) has improved significantly from -0.96% in December 2020 to 20.12% in December 2022 before slightly declining to 6.55% by December 2024.
- Return on assets (ROA) experienced a negative -16.90% in December 2020, then showed an improvement to 18.32% by December 2022, before dropping to 2.78% by December 2024.
- Return on total capital has been volatile, ranging from a low of -76.89% in December 2020 to a high of 50.07% in December 2022, and settling at 15.35% by December 2024.
- Return on equity (ROE) also saw fluctuations, starting at -72.86% in December 2020 and reaching a peak of 44.22% in December 2022, then declining to 6.96% by December 2024.
Overall, while there have been improvements in profitability metrics such as Operating ROA and ROE, there are variations in the performance of ROA and Return on total capital, indicating some challenges in effectively utilizing assets and capital to generate profits consistently.