Occidental Petroleum Corporation (OXY)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 6,358,000 7,202,000 9,048,000 12,711,000 14,068,000 16,983,000 18,591,000 18,114,000 19,041,000 12,259,000 3,048,000 -11,260,000 -17,513,000 -17,425,000 -14,133,000 -3,374,000 -264,000 -1,582,000 4,073,000 6,964,000
Long-term debt US$ in thousands — 18,597,000 19,669,000 19,645,000 19,670,000 20,478,000 21,743,000 25,865,000 29,431,000 — 35,352,000 35,466,000 35,745,000 35,899,000 36,034,000 36,058,000 38,537,000 47,583,000 10,155,000 10,203,000
Total stockholders’ equity US$ in thousands 30,250,000 29,312,000 29,111,000 29,559,000 30,085,000 28,720,000 27,830,000 24,907,000 20,327,000 18,873,000 18,244,000 18,300,000 18,573,000 19,860,000 23,346,000 31,295,000 34,232,000 36,080,000 21,347,000 21,236,000
Return on total capital 21.02% 15.03% 18.55% 25.83% 28.27% 34.52% 37.50% 35.68% 38.27% 64.96% 5.69% -20.94% -32.24% -31.25% -23.80% -5.01% -0.36% -1.89% 12.93% 22.15%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,358,000K ÷ ($—K + $30,250,000K)
= 21.02%

Occidental Petroleum Corp.'s return on total capital has exhibited fluctuations over the past eight quarters, ranging from 16.07% to 31.51%. The trend indicates a general increase from Q1 2022 to Q2 2023, followed by a decrease in Q4 2023. Overall, the company's return on total capital has been above 20% in most of the quarters, suggesting efficient utilization of capital to generate profits. However, the recent decline in Q4 2023 may warrant further investigation to understand the underlying factors impacting the company's capital efficiency.