Occidental Petroleum Corporation (OXY)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	74,008,000	72,609,000	75,036,000	80,064,000	107,190,000
Total stockholders’ equity	US$ in thousands	30,250,000	30,085,000	20,327,000	18,573,000	34,232,000
Financial leverage ratio		2.45	2.41	3.69	4.31	3.13

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $74,008,000K ÷ $30,250,000K
= 2.45

Occidental Petroleum Corp.'s financial leverage ratio has experienced fluctuations over the past five years. The ratio was at 3.19 in 2019, indicating a moderate level of leverage. This ratio then increased to 4.31 in 2020, suggesting a significant increase in leverage. However, in 2021, there was a notable decrease to 3.69, although the leverage remained relatively high. The trend continued in 2022 with a slight decrease to 2.41, which might indicate some deleveraging efforts. Finally, in 2023, the financial leverage ratio increased to 2.45, still indicating a moderate level of leverage. Overall, the company's financial leverage has been volatile, with fluctuations that may require careful monitoring and management to ensure financial stability and performance.