Occidental Petroleum Corporation (OXY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,245,000 | 7,374,000 | 15,063,000 | 5,319,000 | -14,281,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 34,159,000 | 30,250,000 | 30,085,000 | 20,327,000 | 18,573,000 |
| Return on total capital | 15.35% | 24.38% | 50.07% | 26.17% | -76.89% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,245,000K ÷ ($—K + $34,159,000K)
= 15.35%
Occidental Petroleum Corporation's return on total capital has shown significant fluctuations over the past five years.
- In 2020, the company reported a negative return on total capital of -76.89%, indicating that the company's capital utilization was inefficient and resulted in a loss.
- However, by the end of 2021, Occidental Petroleum managed to improve its return on total capital to 26.17%, reflecting a strong turnaround in capital efficiency.
- This positive trend continued in 2022, with a notable increase in return on total capital to 50.07%, indicating that the company was effectively utilizing its capital to generate profits.
- In 2023, although there was a slight decrease, the return on total capital remained at a respectable level of 24.38%, suggesting continued efficiency in capital allocation.
- By the end of 2024, Occidental Petroleum Corporation's return on total capital further decreased to 15.35%, but still remained positive, indicating that the company was able to generate returns on the total capital employed.
Overall, Occidental Petroleum Corporation has demonstrated varying levels of efficiency in utilizing its total capital over the years, with a notable improvement in capital efficiency from 2020 to 2022, followed by some fluctuations in the subsequent years.
Peer comparison
Dec 31, 2024