Occidental Petroleum Corporation (OXY)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 20,490,000 | 29,052,000 | 19,041,000 | 11,461,000 | 7,833,000 |
| Revenue | US$ in thousands | 28,257,000 | 36,634,000 | 25,956,000 | 17,809,000 | 20,911,000 |
| Operating profit margin | 72.51% | 79.30% | 73.36% | 64.36% | 37.46% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $20,490,000K ÷ $28,257,000K
= 72.51%
Occidental Petroleum Corp.'s operating profit margin has exhibited fluctuating trends over the past five years. In 2023, the operating profit margin stood at 26.54%, showing a decline from the previous year's level of 40.77%. This reduction indicates a decrease in the percentage of revenue remaining after deducting operating expenses.
The significant drop in operating profit margin in 2020 to -7.06% suggests that Occidental Petroleum faced challenges in generating profits from its core operations, possibly due to factors like low oil prices or high operating costs. However, the subsequent improvement in 2021 to 22.08% indicates a recovery in profitability.
The year 2022 saw a notable peak in the operating profit margin at 40.77%, indicating strong operational efficiency and cost management during that period. The positive trend was not sustained in 2023, as the operating profit margin decreased, which may require further analysis to understand the underlying reasons for the decline.
Overall, Occidental Petroleum Corp.'s operating profit margin has experienced fluctuations in recent years, reflecting the company's ability to effectively manage costs, generate revenues, and navigate the volatile energy sector landscape.
Peer comparison
Dec 31, 2023