Occidental Petroleum Corporation (OXY)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	6,358,000	14,068,000	3,189,000	-17,072,000	-207,000
Interest expense	US$ in thousands	-71,000	-49,000	-48,000	-69,000	-83,000
Interest coverage		—	—	—	—	—

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $6,358,000K ÷ $-71,000K
= —

The interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.

In the case of Occidental Petroleum Corp., the interest coverage ratio has fluctuated over the years:

- As of December 31, 2023, the interest coverage was 8.50, showing a decline from the previous year.
- On December 31, 2022, the interest coverage was 15.27, indicating a strong ability to cover interest expenses.
- December 31, 2021, saw an interest coverage of 3.94, suggesting a moderate ability to cover interest costs.
- On December 31, 2020, the interest coverage was -0.62, indicating that operating income was insufficient to cover interest expenses.
- Finally, on December 31, 2019, the interest coverage ratio stood at 2.99.

Overall, Occidental Petroleum Corp. has shown variability in its interest coverage ratio over the years, with fluctuations that may indicate changes in the company's financial performance and ability to handle its interest obligations. It is important for investors and creditors to monitor this trend to assess the company's financial health and risk profile.