Occidental Petroleum Corp. (OXY) | Short-term (Operating) Activity

Ratios (Summary)

Occidental Petroleum Corp., short-term (operating) activity ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Turnover Ratios
Inventory turnover	17.99	22.39	18.29	14.25	25.28
Receivables turnover	4.92	4.44	3.78	3.72	7.77
Payables turnover	5.13	4.51	4.10	4.56	7.33
Working capital turnover	10.98	6.66	3.64	7.72	23.33
Average No. of Days
Average inventory processing period	20	16	20	26	14
Add: Average receivable collection period	74	82	96	98	47
Operating cycle	95	99	116	124	61
Less: Average payables payment period	71	81	89	80	50
Cash conversion cycle	23	18	27	44	12

Source: Based on data from Occidental Petroleum Corp. Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as revenue divided by inventory.	Occidental Petroleum Corp.'s inventory turnover improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Occidental Petroleum Corp.'s receivables turnover improved from 2010 to 2011 and from 2011 to 2012.
Payables turnover	An activity ratio calculated as revenue divided by payables.	Occidental Petroleum Corp.'s payables turnover increased from 2010 to 2011 and from 2011 to 2012.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Occidental Petroleum Corp.'s working capital turnover improved from 2010 to 2011 and from 2011 to 2012.
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Occidental Petroleum Corp.'s average inventory processing period improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnoverd.	Occidental Petroleum Corp.'s average receivable collection period improved from 2010 to 2011 and from 2011 to 2012.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Occidental Petroleum Corp.'s operating cycle improved from 2010 to 2011 and from 2011 to 2012.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Occidental Petroleum Corp.'s average payables payment period declined from 2010 to 2011 and from 2011 to 2012.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Occidental Petroleum Corp.'s cash conversion cycle improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.

Inventory Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net sales	24,172	23,939	19,045	15,403	24,217
Inventories	1,344	1,069	1,041	1,081	958
Inventory Turnover, Comparison to Industry
Occidental Petroleum Corp.¹	17.99	22.39	18.29	14.25	25.28
Industry, Oil & Gas	15.26	16.58	14.87	13.19	23.54

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Inventory turnover = Net sales ÷ Inventories
= 24,172 ÷ 1,344 = 17.99

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as revenue divided by inventory.	Occidental Petroleum Corp.'s inventory turnover improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

Receivables Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net sales	24,172	23,939	19,045	15,403	24,217
Trade receivables, net of reserves	4,916	5,395	5,032	4,142	3,117
Receivables Turnover, Comparison to Industry
Occidental Petroleum Corp.¹	4.92	4.44	3.78	3.72	7.77
Industry, Oil & Gas	11.65	11.30	10.36	9.78	14.87

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Receivables turnover = Net sales ÷ Trade receivables, net of reserves
= 24,172 ÷ 4,916 = 4.92

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Occidental Petroleum Corp.'s receivables turnover improved from 2010 to 2011 and from 2011 to 2012.

Payables Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net sales	24,172	23,939	19,045	15,403	24,217
Accounts payable	4,708	5,304	4,646	3,379	3,306
Payables Turnover, Comparison to Industry
Occidental Petroleum Corp.¹	5.13	4.51	4.10	4.56	7.33
Industry, Oil & Gas	11.51	11.61	10.69	10.39	16.45

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Payables turnover = Net sales ÷ Accounts payable
= 24,172 ÷ 4,708 = 5.13

Ratio	Description	The company
Payables turnover	An activity ratio calculated as revenue divided by payables.	Occidental Petroleum Corp.'s payables turnover increased from 2010 to 2011 and from 2011 to 2012.

Working Capital Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Current assets	9,492	11,542	13,059	8,086	7,172
Less: Current liabilities	7,290	7,947	7,825	6,092	6,134
Working capital	2,202	3,595	5,234	1,994	1,038
Net sales	24,172	23,939	19,045	15,403	24,217
Working Capital Turnover, Comparison to Industry
Occidental Petroleum Corp.¹	10.98	6.66	3.64	7.72	23.33
Industry, Oil & Gas	16.12	24.43	19.76	22.65	38.48

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Working capital turnover = Net sales ÷ Working capital
= 24,172 ÷ 2,202 = 10.98

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Occidental Petroleum Corp.'s working capital turnover improved from 2010 to 2011 and from 2011 to 2012.

Average Inventory Processing Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Inventory turnover	17.99	22.39	18.29	14.25	25.28
Average Inventory Processing Period (no. of days), Comparison to Industry
Occidental Petroleum Corp.¹	20	16	20	26	14
Industry, Oil & Gas	24	22	25	28	16

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 17.99 = 20

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Occidental Petroleum Corp.'s average inventory processing period improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.

Average Receivable Collection Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Receivables turnover	4.92	4.44	3.78	3.72	7.77
Average Receivable Collection Period (no. of days), Comparison to Industry
Occidental Petroleum Corp.¹	74	82	96	98	47
Industry, Oil & Gas	31	32	35	37	25

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.92 = 74

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnoverd.	Occidental Petroleum Corp.'s average receivable collection period improved from 2010 to 2011 and from 2011 to 2012.

Operating Cycle

No. of days

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Average inventory processing period	20	16	20	26	14
Average receivable collection period	74	82	96	98	47
Operating Cycle, Comparison to Industry
Occidental Petroleum Corp.¹	95	99	116	124	61
Industry, Oil & Gas	55	54	60	65	40

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= 20 + 74 = 95

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Occidental Petroleum Corp.'s operating cycle improved from 2010 to 2011 and from 2011 to 2012.

Average Payables Payment Period

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Payables turnover	5.13	4.51	4.10	4.56	7.33
Average Payables Payment Period (no. of days), Comparison to Industry
Occidental Petroleum Corp.¹	71	81	89	80	50
Industry, Oil & Gas	32	31	34	35	22

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.13 = 71

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Occidental Petroleum Corp.'s average payables payment period declined from 2010 to 2011 and from 2011 to 2012.

Cash Conversion Cycle

No. of days

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data
Average inventory processing period	20	16	20	26	14
Average receivable collection period	74	82	96	98	47
Average payables payment period	71	81	89	80	50
Cash Conversion Cycle, Comparison to Industry
Occidental Petroleum Corp.¹	23	18	27	44	12
Industry, Oil & Gas	24	23	26	30	18

Source: Based on data from Occidental Petroleum Corp. Annual Reports

2012 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 20 + 74 – 71 = 23

Ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Occidental Petroleum Corp.'s cash conversion cycle improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012 not reaching 2010 level.