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.