Occidental Petroleum Corporation (OXY)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,377,000 | 4,696,000 | 13,304,000 | 2,322,000 | -13,533,000 |
| Total assets | US$ in thousands | 85,445,000 | 74,008,000 | 72,609,000 | 75,036,000 | 80,064,000 |
| ROA | 2.78% | 6.35% | 18.32% | 3.09% | -16.90% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,377,000K ÷ $85,445,000K
= 2.78%
Based on the data provided, Occidental Petroleum Corporation's return on assets (ROA) has shown significant fluctuations over the past five years:
1. December 31, 2020: -16.90%
2. December 31, 2021: 3.09%
3. December 31, 2022: 18.32%
4. December 31, 2023: 6.35%
5. December 31, 2024: 2.78%
The ROA reflects the company's ability to generate profit from its assets. A negative ROA in 2020 indicates that Occidental Petroleum Corporation experienced a loss relative to its assets. However, the positive ROA in subsequent years, especially the significant improvement in 2022 to 18.32%, suggests a turnaround in the company's profitability and efficiency in utilizing its assets to generate earnings.
The decrease in ROA in 2024 to 2.78% may indicate a slight dip in profitability compared to the previous year. It is essential for Occidental Petroleum Corporation to monitor and manage its asset utilization effectively to sustain or improve its ROA in the future. Overall, the fluctuating trend in ROA highlights the dynamic nature of the company's financial performance and the need for ongoing strategic planning to maximize returns on assets.
Peer comparison
Dec 31, 2024