Occidental Petroleum Corporation (OXY)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	4,696,000	5,425,000	6,796,000	9,691,000	13,304,000	12,914,000	10,996,000	7,344,000	2,322,000	-327,000	-4,730,000	-13,186,000	-15,272,000	-15,499,000	-12,836,000	-3,848,000	-985,000	1,060,000	3,841,000	4,054,000
Total assets	US$ in thousands	74,008,000	71,827,000	71,199,000	71,600,000	72,609,000	72,144,000	74,221,000	74,222,000	75,036,000	75,758,000	79,937,000	79,355,000	80,064,000	84,434,000	89,452,000	101,643,000	107,190,000	125,443,000	44,770,000	44,380,000
ROA		6.35%	7.55%	9.55%	13.53%	18.32%	17.90%	14.82%	9.89%	3.09%	-0.43%	-5.92%	-16.62%	-19.07%	-18.36%	-14.35%	-3.79%	-0.92%	0.85%	8.58%	9.13%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,696,000K ÷ $74,008,000K
= 6.35%

Occidental Petroleum Corp.'s return on assets (ROA) has exhibited fluctuations over the past eight quarters. In Q4 2023, the company's ROA stood at 5.07%, reflecting a decline from the previous quarter's 6.20%. This decrease suggests a potential reduction in the company's ability to generate earnings from its assets, which could be a cause for concern.

The ROA improved in Q3 and Q2 of 2023, reaching 8.19% and 12.23%, respectively. These increases indicate a positive trend in the company's asset utilization and profitability during those periods. However, the significant drop in ROA in Q1 2023 to 5.07% raises questions about the company's efficiency in generating earnings relative to its asset base.

Comparing the most recent quarter to the corresponding quarter in the previous year, there has been a noticeable decline in ROA. In Q4 2023, the ROA of 5.07% is substantially lower than the ROA of 17.11% observed in Q4 2022. This downward trend over the quarters may indicate challenges or inefficiencies in Occidental Petroleum Corp.'s operations or asset management strategies.

Overall, Occidental Petroleum Corp.'s ROA has shown variability, with some quarters demonstrating strong performance while others exhibiting decreases. Analysts may want to further investigate the factors affecting the company's ROA to assess its operational efficiency and financial performance.