Occidental Petroleum Corporation (OXY)

Solvency ratios

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
Debt-to-assets ratio 0.00 0.26 0.28 0.27 0.27 0.28 0.29 0.35 0.39 0.00 0.44 0.45 0.45 0.43 0.40 0.35 0.36 0.38 0.23 0.23
Debt-to-capital ratio 0.00 0.39 0.40 0.40 0.40 0.42 0.44 0.51 0.59 0.00 0.66 0.66 0.66 0.64 0.61 0.54 0.53 0.57 0.32 0.32
Debt-to-equity ratio 0.00 0.63 0.68 0.66 0.65 0.71 0.78 1.04 1.45 0.00 1.94 1.94 1.92 1.81 1.54 1.15 1.13 1.32 0.48 0.48
Financial leverage ratio 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 3.13 3.48 2.10 2.09

Occidental Petroleum Corp.'s solvency ratios reflect its ability to meet its long-term financial obligations and the extent of its reliance on debt financing. The debt-to-assets ratio has remained relatively stable around 0.28 over the past four quarters, indicating that approximately 28% of the company's total assets are financed by debt. This suggests a moderate level of leverage and a strong asset base that can support its debt obligations.

The debt-to-capital ratio has also shown stability, hovering around 0.40, implying that 40% of the company's capital structure is debt-financed. This metric provides insight into the company's financial structure, with a lower ratio indicating less reliance on debt and a better capacity to weather economic downturns.

The debt-to-equity ratio, on the other hand, has decreased steadily from 1.06 in Q1 2022 to 0.65 in Q4 2023. This trend suggests that Occidental Petroleum Corp. has been reducing its dependence on debt in relation to equity, which can enhance its financial flexibility and reduce the risks associated with excessive debt levels.

The financial leverage ratio has shown fluctuations but generally maintained a downward trajectory from 2.98 in Q1 2022 to 2.42 in Q1 2023. This metric indicates the extent to which the company relies on debt to finance its operations, with a lower ratio implying a lower financial risk and a healthier balance sheet.

Overall, Occidental Petroleum Corp.'s solvency ratios demonstrate a prudent approach to managing its financial structure, with a focus on reducing debt levels and improving its financial stability over time.

Coverage ratios

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
Interest coverage — — — — — 50.70 23.12 15.00 11.80 10.65 4.32 -34.86 — — — — — -9.59 20.89 23.85

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 outstanding debt with its operating income.

In Q1 2022, the interest coverage ratio was 5.85, indicating that Occidental Petroleum Corp.'s operating income was almost six times its interest expenses. This ratio improved significantly in the following quarters, reaching a peak of 16.14 in Q1 2023, suggesting a strong ability to cover interest payments.

However, the interest coverage ratio started to decline in the subsequent quarters, with values of 10.86, 9.45, and 8.50 in Q2, Q3, and Q4 2023, respectively. While the ratios remained above 8 in the later quarters, the declining trend may warrant further monitoring.

Overall, Occidental Petroleum Corp.'s interest coverage ratio demonstrates the company's ability to manage its interest payment obligations, but the recent downward trend suggests a potential increase in financial risk that should be closely monitored.

See also:

Occidental Petroleum Corporation Solvency Ratios (Quarterly Data)