Occidental Petroleum Corporation (OXY)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,245,000 | 6,893,000 | 7,026,000 | 6,696,000 | 7,215,000 | 8,015,000 | 9,909,000 | 13,452,000 | 15,093,000 | 14,902,000 | 12,635,000 | 8,063,000 | 5,319,000 | 1,888,000 | -3,483,000 | -11,952,000 | -14,460,000 | -13,952,000 | -10,467,000 | -1,432,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 34,159,000 | 34,674,000 | 32,053,000 | 30,811,000 | 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 |
| Return on total capital | 15.35% | 19.88% | 21.92% | 21.73% | 23.85% | 27.34% | 34.04% | 45.51% | 50.17% | 51.89% | 45.40% | 32.37% | 26.17% | 10.00% | -19.09% | -65.31% | -77.85% | -70.25% | -44.83% | -4.58% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,245,000K ÷ ($—K + $34,159,000K)
= 15.35%
Occidental Petroleum Corporation's return on total capital has fluctuated significantly over the past few years, as evidenced by the data provided. The company experienced negative returns in the range of -4.58% to -77.85% from March 2020 to December 2021.
However, there was a notable turnaround starting in March 2022, with the return on total capital steadily improving quarter over quarter. The return increased from 32.37% in March 2022 to 51.89% in September 2022, and reached a peak of 50.17% in December 2022.
Subsequently, the return on total capital began to moderate, declining to 15.35% by December 2024. Overall, it is evident that Occidental Petroleum Corporation has made significant progress in enhancing its return on total capital in recent quarters, although there was some retraction towards the end of the period under review.
Peer comparison
Dec 31, 2024