Occidental Petroleum Corporation (OXY)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Occidental Petroleum Corporation's solvency ratios demonstrate a consistently low level of indebtedness relative to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been reported as zero over the specified periods, indicating that the company's debt levels are negligible compared to its financial resources.
The financial leverage ratio, which reflects the proportion of debt in the company's capital structure, shows a declining trend from 3.25 in March 2020 to 2.50 in December 2024. This indicates that Occidental Petroleum has been reducing its financial leverage over time, which is a positive sign for its solvency and financial stability.
Overall, based on the provided data, Occidental Petroleum Corporation appears to have a strong solvency position with minimal debt obligations in relation to its assets, capital, and equity, as well as a decreasing reliance on debt in its capital structure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.46 | 6.29 | 6.94 | 6.76 | 7.63 | 8.37 | 9.78 | 15.00 | 14.65 | 12.90 | 9.58 | 5.07 | 3.30 | 1.15 | -2.26 | -8.15 | -10.15 | -9.63 | -7.09 | -1.08 |
Occidental Petroleum Corporation's interest coverage ratio, a key financial metric used to evaluate a company's ability to meet interest payments on its debt, has shown fluctuations over the years.
As of March 31, 2020, the interest coverage ratio was -1.08, indicating that the company's earnings before interest and taxes were insufficient to cover its interest expenses. This negative ratio improved marginally in the subsequent quarters but remained significantly below the ideal value of 1.
The trend reversed in the latter part of 2021, with the interest coverage ratio gradually increasing to positive territory by September 30, 2021. This positive trend continued through the end of 2024, reflecting an improving ability of Occidental Petroleum Corporation to cover its interest obligations from its operating earnings.
By the end of December 31, 2024, the interest coverage ratio had reached 4.46, suggesting that the company's earnings were more than four times higher than its interest expenses, indicating a healthier financial position concerning its debt obligations.
Overall, the interest coverage ratios for Occidental Petroleum Corporation have shown volatility in the past, but the recent trend points towards a strengthening ability to meet its interest payments through operating profits.
See also:
Occidental Petroleum Corporation Solvency Ratios (Quarterly Data)