Occidental Petroleum Corporation (OXY)

Financial leverage ratio

		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
Total assets	US$ in thousands	85,445,000	85,803,000	76,216,000	74,277,000	74,008,000	71,827,000	71,199,000	71,600,000	72,609,000	72,144,000	74,221,000	74,222,000	75,036,000	75,758,000	79,937,000	79,355,000	80,064,000	84,434,000	89,452,000	101,643,000
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
Financial leverage ratio		2.50	2.47	2.38	2.41	2.45	2.45	2.45	2.42	2.41	2.51	2.67	2.98	3.69	4.01	4.38	4.34	4.31	4.25	3.83	3.25

December 31, 2024 calculation

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

Occidental Petroleum Corporation's financial leverage ratio has shown fluctuations over the past few years, indicating changes in the company's debt levels relative to its equity. The ratio started at 3.25 in March 2020 and showed a gradual increase reaching a peak of 4.38 in June 2021. This upward trend suggests that the company was relying more on debt financing during this period.

Subsequently, the financial leverage ratio started to decline, dropping to 2.98 in March 2022 and further decreasing to 2.41 by December 2022. This decline may indicate a reduction in the company's debt levels or an increase in equity financing, which could signify a more conservative financial structure.

Throughout the period from March 2023 to December 2024, the financial leverage ratio remained relatively stable around the 2.4 to 2.5 range. This stability suggests that Occidental Petroleum Corporation has maintained a consistent balance between debt and equity in its capital structure, possibly to manage financial risk effectively.

Overall, the downward trend from 2021 to 2022 followed by stability in the financial leverage ratio indicates that the company may have adjusted its capital structure to achieve a more optimal level of leverage, possibly in response to changing market conditions or strategic decisions.