Occidental Petroleum Corporation (OXY)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	85,445,000	74,008,000	72,609,000	75,036,000	80,064,000
Total stockholders’ equity	US$ in thousands	34,159,000	30,250,000	30,085,000	20,327,000	18,573,000
Financial leverage ratio		2.50	2.45	2.41	3.69	4.31

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $85,445,000K ÷ $34,159,000K
= 2.50

The financial leverage ratio of Occidental Petroleum Corporation has demonstrated a declining trend over the past five years, indicating an improvement in the company's leverage position. As of December 31, 2020, the financial leverage ratio stood at 4.31, gradually decreasing to 3.69 by December 31, 2021. This downward trend continued over the subsequent years, reaching 2.41 as of December 31, 2022, 2.45 by December 31, 2023, and finally settling at 2.50 by December 31, 2024.

The decreasing financial leverage ratio suggests that Occidental Petroleum Corporation has been effectively reducing its reliance on debt to finance its operations and investments. A lower leverage ratio indicates a stronger financial position and decreased risk of default, as the company's assets are less encumbered by debt. Overall, the declining trend in the financial leverage ratio reflects a positive shift towards a more sustainable and less leveraged capital structure for Occidental Petroleum Corporation.