Stock Analysis on Net
Stock Analysis on Net

Occidental Petroleum Corp. (NYSE:OXY)

Analysis of Operating Leases

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An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Occidental Petroleum Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 74,008 72,609 75,036 80,064 109,330
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 74,008 72,609 75,036 80,064 109,330
Adjustment to Total Debt
Total debt (as reported) 19,738 19,835 29,617 36,185 38,588
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Current operating lease liabilities 446 273 186 473 569
Add: Noncurrent operating lease liabilities 727 657 585 641 854
Total debt (adjusted) 20,911 20,765 30,388 37,299 40,011

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.

Occidental Petroleum Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

Occidental Petroleum Corp., adjusted financial ratios

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.38 0.50 0.35 0.22 0.19
Adjusted total asset turnover 0.38 0.50 0.35 0.22 0.19
Debt to Equity2
Reported debt to equity 0.65 0.66 1.46 1.95 1.13
Adjusted debt to equity 0.69 0.69 1.49 2.01 1.17
Return on Assets3 (ROA)
Reported ROA 6.35% 18.32% 3.09% -18.52% -0.61%
Adjusted ROA 6.35% 18.32% 3.09% -18.52% -0.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 See details »

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Occidental Petroleum Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Occidental Petroleum Corp. adjusted debt to equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Occidental Petroleum Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Occidental Petroleum Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales 28,257 36,634 25,956 17,809 20,393
Total assets 74,008 72,609 75,036 80,064 109,330
Activity Ratio
Total asset turnover1 0.38 0.50 0.35 0.22 0.19
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 28,257 36,634 25,956 17,809 20,393
Adjusted total assets 74,008 72,609 75,036 80,064 109,330
Activity Ratio
Adjusted total asset turnover2 0.38 0.50 0.35 0.22 0.19

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 28,257 ÷ 74,008 = 0.38

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 28,257 ÷ 74,008 = 0.38

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Occidental Petroleum Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 19,738 19,835 29,617 36,185 38,588
Stockholders’ equity 30,250 30,085 20,327 18,573 34,232
Solvency Ratio
Debt to equity1 0.65 0.66 1.46 1.95 1.13
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 20,911 20,765 30,388 37,299 40,011
Stockholders’ equity 30,250 30,085 20,327 18,573 34,232
Solvency Ratio
Adjusted debt to equity2 0.69 0.69 1.49 2.01 1.17

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 19,738 ÷ 30,250 = 0.65

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 20,911 ÷ 30,250 = 0.69

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Occidental Petroleum Corp. adjusted debt-to-equity ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Occidental 4,696 13,304 2,322 (14,831) (667)
Total assets 74,008 72,609 75,036 80,064 109,330
Profitability Ratio
ROA1 6.35% 18.32% 3.09% -18.52% -0.61%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Occidental 4,696 13,304 2,322 (14,831) (667)
Adjusted total assets 74,008 72,609 75,036 80,064 109,330
Profitability Ratio
Adjusted ROA2 6.35% 18.32% 3.09% -18.52% -0.61%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to Occidental ÷ Total assets
= 100 × 4,696 ÷ 74,008 = 6.35%

2 Adjusted ROA = 100 × Net income (loss) attributable to Occidental ÷ Adjusted total assets
= 100 × 4,696 ÷ 74,008 = 6.35%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Occidental Petroleum Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.