Occidental Petroleum Corporation (OXY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 82.52% | 87.21% | 83.88% | 78.27% | 64.81% |
| Operating profit margin | 72.51% | 79.30% | 73.36% | 64.36% | 37.46% |
| Pretax margin | 22.75% | 38.54% | 12.47% | -95.47% | -0.59% |
| Net profit margin | 16.62% | 36.32% | 8.95% | -83.28% | -4.71% |
Occidental Petroleum Corp.'s profitability ratios reflect fluctuations over the past five years. The gross profit margin remained relatively high and stable, ranging between 86.31% and 91.07%, indicating efficient cost management and strong pricing power. However, the operating profit margin exhibited significant volatility, with a notable drop in 2020 due to negative operating income. The company's ability to generate income before taxes also fluctuated, with a sharp decline in 2020 driven by significant expenses.
The net profit margin, a key indicator of overall profitability, also displayed considerable variability. The company experienced a substantial net loss in 2020, resulting in a negative net profit margin. The subsequent years saw a partial recovery in profitability, as evidenced by positive net profit margins, albeit at lower levels compared to previous years.
Overall, Occidental Petroleum Corp.'s profitability ratios reflect a mix of operational efficiency and challenges, highlighting the impact of external factors such as fluctuating energy prices and market conditions on the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 27.69% | 40.01% | 25.38% | 14.31% | 7.31% |
| Return on assets (ROA) | 6.35% | 18.32% | 3.09% | -18.52% | -0.92% |
| Return on total capital | 21.02% | 28.27% | 6.41% | -31.43% | -0.28% |
| Return on equity (ROE) | 15.52% | 44.22% | 11.42% | -79.85% | -2.88% |
Occidental Petroleum Corp.'s profitability ratios exhibit fluctuations over the past five years. The operating return on assets (Operating ROA) declined from 20.57% in 2022 to 10.13% in 2023, showcasing a decrease in profitability from core operations. The Return on Assets (ROA) also followed this trend, dropping from 17.11% in 2022 to 5.07% in 2023, indicating a decline in the company's ability to generate profits from its total assets.
Despite these declines, the Return on Total Capital saw a positive trend, increasing from 31.51% in 2022 to 16.07% in 2023, suggesting improved returns on the total capital employed by the company. The Return on Equity (ROE) also showed an upward trajectory from 41.29% in 2022 to 12.40% in 2023, indicating enhanced profitability in relation to shareholders' equity.
Overall, Occidental Petroleum Corp. experienced varying profitability levels over the past five years, reflecting changes in operational efficiency, capital deployment, and shareholder value creation. Further analysis of the company's financial performance and operational strategies would be beneficial to understand the factors contributing to these fluctuations in profitability ratios.