Occidental Petroleum Corporation (OXY)

Interest coverage

		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
Interest expense (ttm)	US$ in thousands	-71,000	-68,000	-61,000	-57,000	-49,000	335,000	804,000	1,208,000	1,614,000	1,151,000	705,000	323,000	-69,000	-197,000	-134,000	-137,000	-140,000	165,000	195,000	292,000
Interest coverage		—	—	—	—	—	50.70	23.12	15.00	11.80	10.65	4.32	-34.86	—	—	—	—	—	-9.59	20.89	23.85

December 31, 2023 calculation

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

Occidental Petroleum Corp.'s interest coverage ratio has shown a fluctuating trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on debt obligations from its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

In the most recent quarter (Q4 2023), Occidental Petroleum Corp. reported an interest coverage ratio of 8.50, which represents a slight decrease compared to the previous quarter but is still at a relatively healthy level. The company's interest coverage ratio has generally been above 5, which is considered a minimum threshold for financial health.

Looking back over the past year, Occidental Petroleum Corp.'s interest coverage has demonstrated some volatility, with the ratio ranging from a low of 5.85 in Q1 2022 to a high of 16.14 in Q1 2023. The upward trend from Q1 2022 to Q1 2023 indicates an improvement in the company's ability to cover its interest expenses with its operating income.

Overall, Occidental Petroleum Corp.'s interest coverage ratio suggests that the company has been effectively managing its debt obligations, with the ability to generate sufficient operating income to cover its interest payments. However, investors and stakeholders should continue to monitor the trend in the interest coverage ratio to ensure the company maintains its financial stability.