Occidental Petroleum Corporation (OXY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	34,159,000	30,250,000	30,085,000	20,327,000	18,573,000
ROE		6.96%	15.52%	44.22%	11.42%	-72.86%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,377,000K ÷ $34,159,000K
= 6.96%

Occidental Petroleum Corporation's return on equity (ROE) has shown variability over the past five years. In December 2020, the company reported a negative ROE of -72.86%, indicating that the company's net income was insufficient to generate positive returns for shareholders based on their equity investment.

However, there has been a significant improvement in Occidental Petroleum's ROE in the subsequent years. By December 2021, the ROE had rebounded to 11.42%, signaling a positive turnaround in the company's profitability and efficiency in utilizing shareholders' equity to generate earnings.

The positive trend continued as the ROE further increased to 44.22% by December 2022, reflecting a substantial growth in profitability and shareholder value creation. This could be indicative of improved operational performance, cost management, or strategic initiatives that boosted the company's returns on equity.

In December 2023, the ROE slightly decreased to 15.52%, suggesting a potential stabilization or minor setback in the company's profitability compared to the previous year. However, the ROE remained positive, indicating that Occidental Petroleum continued to generate returns for its shareholders above the industry average.

By December 2024, the company's ROE declined further to 6.96%, indicating a decrease in profitability relative to the prior year. This dip could be attributed to various factors such as changes in oil prices, operating costs, or market conditions impacting Occidental Petroleum's financial performance.

Overall, Occidental Petroleum Corporation's ROE has exhibited fluctuations over the years, showing both positive and negative trends. Investors and stakeholders may need to closely monitor the company's financial performance and management strategies to assess its ability to sustain and improve ROE in the future.