Stock Analysis on Net

Occidental Petroleum Corp. (NYSE:OXY)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 6, 2025.

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

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Economic Profit

Occidental Petroleum Corp., economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net operating profit after taxes (NOPAT)1
Cost of capital2
Invested capital3
 
Economic profit4

Based on: 10-K (reporting date: 2024-12-31), 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).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= × =


The analysis of the financial data reveals several key trends in the company's profitability, capital efficiency, and value creation over the five-year period from December 31, 2020, to December 31, 2024.

Net Operating Profit After Taxes (NOPAT)

NOPAT displays significant volatility across the observed periods. The figure starts with a substantial loss of approximately 14.9 billion USD in 2020. The company then experiences a pronounced recovery in 2021, reporting a positive NOPAT of around 4.2 billion USD, followed by further improvement to 12.5 billion USD in 2022. However, this upward trend reverses after 2022, with profits decreasing to 5.5 billion USD in 2023 and further declining to 3.4 billion USD by 2024. Overall, despite the recovery from the initial loss, profitability diminishes notably in the latter years.

Cost of Capital

The cost of capital shows an overall upward movement from 10.54% in 2020 to a peak of around 15.56% in 2022. Following this apex, it marginally declines but remains elevated at 14.36% by 2024. This trend suggests increasing financing costs and/or heightened risk perceptions associated with the company's capital structure over the period.

Invested Capital

Invested capital decreases from approximately 63.3 billion USD in 2020 to about 56.3 billion USD by the end of 2022, indicating a contraction in the asset base or possibly divestitures or depreciation exceeding new investments. However, in the subsequent years, invested capital increases to nearly 56.9 billion USD in 2023 and then significantly grows to 66.9 billion USD in 2024. This reversal might reflect new investments or asset acquisitions after a period of downsizing.

Economic Profit

Economic profit mirrors the patterns seen in NOPAT but highlights the company's value creation relative to its cost of capital. The firm endures substantial negative economic profit in 2020 (-21.6 billion USD) and 2021 (-3.0 billion USD), indicating value destruction during these years. In 2022, economic profit turns positive at 3.8 billion USD, reflecting effective value generation in that period. However, this is short-lived as economic profit returns to negative territory in 2023 (-3.3 billion USD) and worsens to -6.2 billion USD in 2024, suggesting that the company is again failing to cover its cost of capital.

In summary, the data depicts a company that overcame extreme losses in 2020, achieved peak operational performance in 2022, but subsequently faces declining profitability and sustained challenges in value creation. The elevated and fluctuating cost of capital coupled with changes in invested capital hint at evolving capital dynamics and possibly increasing financial or operational risks. The negative economic profits in most years point to the need for optimized capital deployment and improved operational efficiency to ensure sustained shareholder value.


Net Operating Profit after Taxes (NOPAT)

Occidental Petroleum Corp., NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) attributable to Occidental
Deferred income tax expense (benefit)1
Increase (decrease) in allowance for doubtful accounts2
Increase (decrease) in LIFO reserve3
Increase (decrease) in equity equivalents4
Interest and debt expense, net
Interest expense, operating lease liability5
Adjusted interest and debt expense, net
Tax benefit of interest and debt expense, net6
Adjusted interest and debt expense, net, after taxes7
(Income) loss from discontinued operations, net of tax8
Net income (loss) attributable to noncontrolling interest
Net operating profit after taxes (NOPAT)

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in allowance for doubtful accounts.

3 Addition of increase (decrease) in LIFO reserve. See details »

4 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Occidental.

5 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= × =

6 2024 Calculation
Tax benefit of interest and debt expense, net = Adjusted interest and debt expense, net × Statutory income tax rate
= × 21.00% =

7 Addition of after taxes interest expense to net income (loss) attributable to Occidental.

8 Elimination of discontinued operations.


Net income (loss) attributable to Occidental
The net income shows a significant turnaround from a substantial loss of -14,831 million USD in 2020 to a positive net income of 2,322 million USD in 2021. This positive trend continues with a peak net income of 13,304 million USD in 2022, indicating a strong recovery and profitability increase. However, the net income declines in subsequent years, dropping to 4,696 million USD in 2023 and further to 3,056 million USD in 2024, suggesting some challenges or decreased profitability in the most recent periods.
Net operating profit after taxes (NOPAT)
The NOPAT also follows a similar pattern, starting with a negative value of -14,889 million USD in 2020, reflecting operating losses. A considerable improvement occurs in 2021 with a positive NOPAT of 4,213 million USD, followed by a substantial increase to 12,526 million USD in 2022. Like net income, the NOPAT decreases over the subsequent periods to 5,524 million USD in 2023 and declining further to 3,380 million USD in 2024, indicating reduced operating profitability after a peak performance in 2022.
Overall Trend and Insights
The data reflects a strong recovery and improved profitability between 2020 and 2022, both in net income and operating profits. This suggests effective operational improvements or favorable market conditions during this interval. However, the decline from 2023 onwards in both metrics points to emerging challenges or less favorable conditions impacting profitability. Despite the reductions, the figures remain positive in the latest years, indicating ongoing profitability, albeit at a reduced level compared to the 2022 peak.

Cash Operating Taxes

Occidental Petroleum Corp., cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Income tax expense (benefit)
Less: Deferred income tax expense (benefit)
Add: Tax savings from interest and debt expense, net
Cash operating taxes

Based on: 10-K (reporting date: 2024-12-31), 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).


The financial data indicates notable fluctuations in tax-related expenses over the five-year period. The income tax expense (benefit) shows a significant shift from a substantial tax benefit in 2020 to positive tax expenses in subsequent years. Specifically, there was a large negative expense (tax benefit) recorded in 2020, which reversed sharply to a positive tax expense in 2021 and remained positive through 2024. While the amount decreased slightly in 2022 compared to 2021, it increased again in 2023 before declining somewhat in 2024.

Cash operating taxes demonstrated a clear upward trajectory from 2020 through 2022, tripling over this period. This growth slowed noticeably in 2023, where the cash taxes decreased from the previous year, and remained relatively stable into 2024. The spike in cash operating taxes in 2022 could reflect an underlying increase in taxable income or changes in operational profitability or tax regulations during that year.

Income Tax Expense (Benefit)
Exhibited a transition from a tax benefit of -2,172 million US dollars in 2020 to positive expenses in the range of 813 to 1,733 million US dollars in the following years, indicating a reversal from a net tax credit to a liability position.
Cash Operating Taxes
Increased substantially from 655 million US dollars in 2020 to a peak of 2,681 million US dollars in 2022, before declining and stabilizing around 1,887 to 1,892 million US dollars in 2023 and 2024 respectively.

Overall, the data suggests a period of tax volatility in 2020 followed by a normalization to consistent tax payments. The divergence between income tax expense and cash operating taxes in some years may reflect timing differences, deferred tax items, or adjustments related to tax regulations and accounting interpretations. The reduction in cash taxes from the 2022 peak hints at either improved tax planning, changes in profitability, or external factors affecting taxable income in recent years.


Invested Capital

Occidental Petroleum Corp., invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current maturities of long-term debt
Long-term debt, net, excluding current maturities
Operating lease liability1
Total reported debt & leases
Stockholders’ equity
Net deferred tax (assets) liabilities2
Allowance for doubtful accounts3
LIFO reserve4
Equity equivalents5
Accumulated other comprehensive (income) loss, net of tax6
Noncontrolling interest
Adjusted stockholders’ equity
Invested capital

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of allowance for doubtful accounts receivable.

4 Addition of LIFO reserve. See details »

5 Addition of equity equivalents to stockholders’ equity.

6 Removal of accumulated other comprehensive income.


Total Reported Debt & Leases
The total reported debt and leases showed a significant decline from 37,299 million USD at the end of 2020 to 20,765 million USD by the end of 2022. This reduction indicates a deleveraging trend over the initial two years. However, from 2023 onwards, there was a slight increase in debt levels, rising to 20,911 million USD, followed by a more pronounced rise to 27,104 million USD in 2024. This suggests a possible shift toward increased leverage or additional financing after a period of debt reduction.
Stockholders' Equity
Stockholders’ equity exhibited a consistent upward trajectory over the entire period. Starting at 18,573 million USD in 2020, it increased to 20,327 million USD in 2021 and continued the upward trend to 30,085 million USD in 2022. The growth persisted in subsequent years, reaching 30,250 million USD in 2023 and further advancing to 34,159 million USD in 2024. This steady increase reflects positive retained earnings and/or additional equity contributions, strengthening the company's net asset base.
Invested Capital
Invested capital declined from 63,270 million USD in 2020 to 56,295 million USD in 2022, indicating a contraction in capital employed. The level stabilized slightly in 2023 at 56,860 million USD but then experienced a substantial increase to 66,896 million USD in 2024. This late surge could be indicative of renewed investment or capital infusion, possibly aligning with the increase in reported debt during the same period.
Overall Analysis
The financial data depict an initial phase of deleveraging combined with growth in equity and reduced invested capital through the first three years. From 2023 onwards, there is a reversal in debt trend accompanied by a significant increase in invested capital and continued growth in equity. This pattern may imply strategic shifts such as expansion initiatives funded by a mix of increased leverage and equity strengthening. The overall positive trajectory in equity underscores improved net worth despite fluctuations in debt and capital employed.

Cost of Capital

Occidental Petroleum Corp., cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Preferred stock, at $1.00 per share par value (book value) ÷ = × =
Long-term debt, including current maturities3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

Based on: 10-K (reporting date: 2024-12-31).

1 US$ in millions

2 Equity. See details »

3 Long-term debt, including current maturities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Preferred stock, at $1.00 per share par value (book value) ÷ = × =
Long-term debt, including current maturities3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

Based on: 10-K (reporting date: 2023-12-31).

1 US$ in millions

2 Equity. See details »

3 Long-term debt, including current maturities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Preferred stock, at $1.00 per share par value (book value) ÷ = × =
Long-term debt, including current maturities3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

Based on: 10-K (reporting date: 2022-12-31).

1 US$ in millions

2 Equity. See details »

3 Long-term debt, including current maturities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Preferred stock, at $1.00 per share par value (book value) ÷ = × =
Long-term debt, including current maturities3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Equity. See details »

3 Long-term debt, including current maturities. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 ÷ = × =
Preferred stock, at $1.00 per share par value (book value) ÷ = × =
Long-term debt, including current maturities3 ÷ = × × (1 – 21.00%) =
Operating lease liability4 ÷ = × × (1 – 21.00%) =
Total:

Based on: 10-K (reporting date: 2020-12-31).

1 US$ in millions

2 Equity. See details »

3 Long-term debt, including current maturities. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

Occidental Petroleum Corp., economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1
Invested capital2
Performance Ratio
Economic spread ratio3
Benchmarks
Economic Spread Ratio, Competitors4
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Economic profit. See details »

2 Invested capital. See details »

3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.


The economic profit of the company displays significant volatility across the analyzed period. Initially, in 2020, economic profit was deeply negative at -21,556 million US dollars, indicating substantial value destruction. This loss sharply decreased in magnitude by 2021 to -3,013 million US dollars, signaling some recovery. In 2022, the company achieved a positive economic profit of 3,766 million US dollars, reflecting a turnaround and value creation. However, the subsequent years witnessed a regression, with economic profit reverting to a negative position: -3,253 million US dollars in 2023 and further declining to -6,225 million US dollars by 2024.

Invested capital exhibited a generally stable but slightly fluctuating pattern during the period, with an initial value of 63,270 million US dollars at the end of 2020. This amount declined over the next two years, reaching a low of 56,295 million US dollars in 2022. From 2022 onwards, the invested capital began to rise again, reaching 66,896 million US dollars in 2024, surpassing the initial level of 2020. This trend indicates a moderate reduction in capital investment followed by renewed capital deployment in the later years.

The economic spread ratio, which measures the return relative to the cost of capital, mirrors the economic profit trends with pronounced fluctuations. In 2020, the ratio was highly negative at -34.07%, indicating severe underperformance relative to capital costs. This improved considerably in 2021 to -5.19% and turned positive in 2022 at 6.69%, in line with the positive economic profit measured that year. Nevertheless, the ratio again declined in the subsequent years, becoming negative at -5.72% in 2023 and further worsening to -9.31% in 2024. The fluctuations suggest inconsistent profitability relative to capital costs, with only a brief period of value generation in 2022.

Overall, the data reveals a company experiencing significant challenges in generating consistent economic profit and maintaining positive economic spreads. While there was a notable recovery in 2022, this was not sustained, with subsequent years showing renewed losses. Invested capital levels have remained relatively stable, with a slight dip and recovery pattern, indicating active management of capital deployment amid volatile profitability.


Economic Profit Margin

Occidental Petroleum Corp., economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Economic profit1
Net sales
Performance Ratio
Economic profit margin2
Benchmarks
Economic Profit Margin, Competitors3
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.

Based on: 10-K (reporting date: 2024-12-31), 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).

1 Economic profit. See details »

2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Net sales
= 100 × ÷ =

3 Click competitor name to see calculations.


The financial data reveals notable volatility in the economic profit and economic profit margin over the five-year period. Starting in 2020, the company reported a significant negative economic profit, which drastically improved by 2022 to a positive figure, before reverting back to losses in the subsequent years.

Economic Profit
The economic profit was deeply negative in 2020 at approximately -21.6 billion US dollars, indicating substantial value destruction. This negative trend improved sharply by 2021 to around -3 billion US dollars and turned positive in 2022 with a profit of approximately 3.8 billion US dollars. However, the company experienced a reversal in 2023 and 2024 with economic profits again negative at -3.3 billion and -6.2 billion US dollars respectively. This suggests fluctuating profitability and possibly challenges in managing capital costs effectively in recent years.
Net Sales
Net sales showed an upward trend from 17.8 billion US dollars in 2020 to a peak of 36.6 billion US dollars in 2022. Subsequently, net sales declined in 2023 and 2024 to 28.3 billion and 26.7 billion US dollars respectively. This pattern indicates that the company experienced significant revenue growth up to 2022, potentially driven by market or operational factors, followed by a contraction in sales volume or pricing.
Economic Profit Margin
The economic profit margin mirrored the trend seen in economic profit, starting with a deeply negative margin of -121.04% in 2020. This margin dramatically improved to -11.61% in 2021 and became positive at 10.28% in 2022. However, it again turned negative in 2023 and further deteriorated to -23.29% in 2024. The margin trend corroborates the volatility in profitability, reflecting both operational dynamics and the potential cost structure challenges faced by the company.

Overall, the data demonstrates a cyclical pattern in profitability and sales performance over the period. Economic profit and margin improvements in 2021 and 2022 coincide with rising net sales, suggesting effective leverage of revenue growth during those years. Conversely, the decline in both profitability metrics and sales in 2023 and 2024 may indicate external market pressures or internal inefficiencies impacting value creation.