Occidental Petroleum Corporation (OXY)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	20,490,000	22,207,000	24,195,000	27,959,000	29,052,000	28,698,000	26,247,000	21,727,000	19,041,000	15,927,000	13,569,000	-6,679,000	-8,372,000	-9,181,000	-10,249,000	8,162,000	7,688,000	3,599,000	6,761,000	7,940,000
Revenue (ttm)	US$ in thousands	28,257,000	29,304,000	31,536,000	35,510,000	36,634,000	36,328,000	33,730,000	29,012,000	25,956,000	22,203,000	19,519,000	16,489,000	17,809,000	20,277,000	22,028,000	23,520,000	20,911,000	20,294,000	18,692,000	18,355,000
Operating profit margin		72.51%	75.78%	76.72%	78.74%	79.30%	79.00%	77.82%	74.89%	73.36%	71.73%	69.52%	-40.51%	-47.01%	-45.28%	-46.53%	34.70%	36.77%	17.73%	36.17%	43.26%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $20,490,000K ÷ $28,257,000K
= 72.51%

To analyze Occidental Petroleum Corp.'s operating profit margin over the past eight quarters, we can observe the following trends:

- The operating profit margin has experienced fluctuations over the period, starting at 29.65% in Q1 2022 and reaching its peak at 40.87% in Q3 2022 before gradually declining to 26.54% in Q4 2023.
- The company witnessed a significant decline in operating profit margin between Q3 2022 and Q1 2023, dropping from 40.87% to 38.79%. However, the margin rebounded slightly in Q2 and Q3 2023, only to decrease again in Q4 2023.
- Despite the fluctuations, Occidental Petroleum Corp. generally maintained a healthy operating profit margin above 25% throughout the period, indicating operational efficiency in generating profits from its core business activities.
- The noticeable peaks in Q3 2022 and Q4 2022, with margins exceeding 40%, suggest effective cost management and revenue generation strategies during those quarters.
- The decreasing trend from Q3 2022 onwards may raise concerns about the company's ability to sustain higher margins in the face of changing market conditions or operational challenges.

In conclusion, while Occidental Petroleum Corp. has shown variability in its operating profit margin over the past eight quarters, the company has generally maintained a strong margin above 25%, reflecting operational efficiency. However, the recent decline in margins warrants further monitoring to assess the company's ability to sustain profitability in the future.