Stock Analysis on Net

Occidental Petroleum Corp. (NYSE:OXY)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Occidental Petroleum Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,524 12,526 4,213 (14,889) (672)
Invested capital2 56,860 56,295 58,059 63,270 84,184
Performance Ratio
ROIC3 9.72% 22.25% 7.26% -23.53% -0.80%
Benchmarks
ROIC, Competitors4
Chevron Corp. 9.17% 19.68% 10.04% -5.22% 0.44%
ConocoPhillips 15.20% 28.02% 13.45% -5.92% 12.76%
Exxon Mobil Corp. 12.32% 21.12% 12.01% -12.45% 5.40%
Marathon Petroleum Corp. 16.88% 25.81% 9.73% -15.64% 7.54%
Valero Energy Corp. 15.39% 27.16% 12.49% -4.03% 10.87%

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 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 5,524 ÷ 56,860 = 9.72%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Occidental Petroleum Corp. ROIC improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Decomposition of ROIC

Occidental Petroleum Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 9.72% = 26.23% × 0.50 × 74.54%
Dec 31, 2022 22.25% = 41.51% × 0.65 × 82.37%
Dec 31, 2021 7.26% = 20.91% × 0.45 × 77.64%
Dec 31, 2020 -23.53% = -79.93% × 0.28 × 100.00%
Dec 31, 2019 -0.80% = 6.27% × 0.24 × -52.57%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2023 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Occidental Petroleum Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,524 12,526 4,213 (14,889) (672)
Add: Cash operating taxes2 1,887 2,681 1,213 655 1,951
Net operating profit before taxes (NOPBT) 7,411 15,207 5,426 (14,234) 1,279
 
Net sales 28,257 36,634 25,956 17,809 20,393
Profitability Ratio
OPM3 26.23% 41.51% 20.91% -79.93% 6.27%
Benchmarks
OPM, Competitors4
Chevron Corp. 13.94% 22.85% 15.98% -8.90% 4.08%
ConocoPhillips 29.62% 36.63% 29.99% -13.37% 31.34%
Exxon Mobil Corp. 15.71% 19.95% 14.69% -17.59% 8.83%
Marathon Petroleum Corp. 9.30% 12.61% 5.74% -18.45% 5.25%
Valero Energy Corp. 7.27% 9.65% 5.33% -3.98% 4.62%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 7,411 ÷ 28,257 = 26.23%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Occidental Petroleum Corp. OPM improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Turnover of Capital (TO)

Occidental Petroleum Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net sales 28,257 36,634 25,956 17,809 20,393
Invested capital1 56,860 56,295 58,059 63,270 84,184
Efficiency Ratio
TO2 0.50 0.65 0.45 0.28 0.24
Benchmarks
TO, Competitors3
Chevron Corp. 0.93 1.11 0.80 0.48 0.71
ConocoPhillips 0.69 1.04 0.60 0.37 0.56
Exxon Mobil Corp. 1.09 1.34 1.01 0.65 0.84
Marathon Petroleum Corp. 2.32 2.55 1.89 0.99 1.51
Valero Energy Corp. 2.83 3.54 2.56 1.58 2.66

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 Invested capital. See details »

2 2023 Calculation
TO = Net sales ÷ Invested capital
= 28,257 ÷ 56,860 = 0.50

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Occidental Petroleum Corp. TO improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Effective Cash Tax Rate (CTR)

Occidental Petroleum Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,524 12,526 4,213 (14,889) (672)
Add: Cash operating taxes2 1,887 2,681 1,213 655 1,951
Net operating profit before taxes (NOPBT) 7,411 15,207 5,426 (14,234) 1,279
Tax Rate
CTR3 25.46% 17.63% 22.36% 152.57%
Benchmarks
CTR, Competitors4
Chevron Corp. 29.08% 22.40% 21.79% 85.07%
ConocoPhillips 25.68% 26.41% 25.25% 27.88%
Exxon Mobil Corp. 27.99% 21.11% 19.45% 27.33%
Marathon Petroleum Corp. 21.82% 19.76% 10.23% 4.97%
Valero Energy Corp. 25.22% 20.60% 8.53% 11.52%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,887 ÷ 7,411 = 25.46%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Occidental Petroleum Corp. CTR decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.