Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Liquidity Ratios (Summary)
Occidental Petroleum Corp., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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).
- Current Ratio
- The current ratio exhibited an overall decreasing trend after peaking in 2021 at 1.23. It rose from 1.07 in 2020 to 1.23 in 2021, followed by a slight decline to 1.15 in 2022. Subsequently, it dropped below 1.0 in 2023, reaching 0.92, and showed a minor improvement to 0.95 in 2024. This progression indicates a weakening short-term liquidity position in the later years despite initial improvement.
- Quick Ratio
- The quick ratio increased significantly from 0.50 in 2020 to 0.84 in 2021, suggesting enhanced ability to meet immediate liabilities without relying on inventory. However, it declined in the following years, falling to 0.68 in 2022 and then further to 0.60 in 2023. There was a slight recovery to 0.67 in 2024, but the ratio remained below the 2021 peak, indicating some erosion in the most liquid assets relative to current liabilities over time.
- Cash Ratio
- The cash ratio improved modestly from 0.24 in 2020 to 0.33 in 2021, signifying a better position regarding cash and cash equivalents against current liabilities. It then dropped sharply to 0.13 in 2022, marking a significant reduction in immediate liquidity. The ratio increased slightly in the subsequent years to 0.16 in 2023 and 0.22 in 2024 but did not return to the 2021 level. This pattern suggests fluctuations in the company’s cash reserves relative to short-term obligations, with a notable decline after 2021.
Current Ratio
Occidental Petroleum Corp., current ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Current Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Current Ratio, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current assets
- Current assets showed growth from 8819 million US dollars in 2020 to 10211 million in 2021, indicating an expansion of liquid resources. However, this value declined to 8886 million in 2022 and further decreased to 8375 million in 2023. A partial recovery occurred in 2024, with current assets rising to 9070 million.
- Current liabilities
- Current liabilities increased slightly from 8223 million US dollars in 2020 to 8324 million in 2021. Contrasting the movement in assets, liabilities declined to 7757 million in 2022, before rising significantly to 9148 million in 2023 and continuing upward to 9521 million in 2024. This trend indicates growing short-term obligations in the last two reported years.
- Current ratio
- The current ratio, an indicator of short-term liquidity, improved from 1.07 in 2020 to a peak of 1.23 in 2021. It then decreased to 1.15 in 2022 before falling below the critical threshold of 1.0 in 2023, reaching 0.92. In 2024, it showed a modest improvement to 0.95 but still remained below 1.0, signaling deteriorated liquidity position in recent years. This reflects that the company's current liabilities have begun to exceed its current assets, suggesting potential liquidity concerns.
- Summary
- Overall, the data reveals fluctuating current assets with an initial increase followed by a decline and a slight recovery. Current liabilities show a more volatile pattern, with a decrease in 2022 followed by a sharp increase in the subsequent two years. The current ratio's trend reflects a weakening liquidity position over the period, moving from comfortable coverage in 2020-2021 towards a potential short-term financial constraint by 2023 and 2024. These changes indicate that, despite some recovery in assets, the company faces increasing short-term liabilities, putting pressure on its working capital management.
Quick Ratio
Occidental Petroleum Corp., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Trade receivables, net of reserves | ||||||
| Joint interest receivables | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Quick Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Quick Ratio, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Quick assets trend
- The total quick assets increased significantly from 4,123 million USD in 2020 to a peak of 6,972 million USD in 2021, followed by a decline to 5,265 million USD in 2022. Thereafter, quick assets showed a modest recovery to 5,523 million USD in 2023 and further increased to 6,378 million USD in 2024.
- Current liabilities trend
- Current liabilities exhibited a relatively stable increase over the period. Starting at 8,223 million USD in 2020, liabilities rose slightly to 8,324 million USD in 2021, decreased somewhat to 7,757 million USD in 2022, and then increased steadily to 9,148 million USD in 2023 and 9,521 million USD in 2024.
- Quick ratio trend
- The quick ratio improved notably from 0.50 in 2020 to 0.84 in 2021, indicating a stronger short-term liquidity position relative to current liabilities during that year. However, this ratio declined in 2022 to 0.68, dropped further in 2023 to 0.60, and experienced a slight increase to 0.67 in 2024. Despite the fluctuations, the quick ratio remained below 1.0 over the entire period, indicating that quick assets were consistently less than current liabilities.
- Overall liquidity assessment
- Over the five-year span, quick assets and current liabilities both demonstrated some volatility, with quick assets peaking in 2021 before declining and recovering. The general pattern of the quick ratio suggests that the company maintained a liquidity position with quick assets insufficient to cover current liabilities at any point, though there was a temporary improvement in 2021. Subsequently, liquidity weakened but showed signs of slight improvement toward the end of the period. These patterns indicate an ongoing challenge in maintaining liquid assets adequate to meet near-term obligations.
Cash Ratio
Occidental Petroleum Corp., cash ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Cash Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Cash Ratio, Industry | ||||||
| Energy | ||||||
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 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrated a fluctuating trend over the five-year period. Initially, there was a significant increase from 2008 million USD in 2020 to 2764 million USD in 2021. This was followed by a sharp decline to 984 million USD in 2022, indicating a substantial decrease in liquidity. Subsequently, the cash assets recovered gradually in the next two years, reaching 1426 million USD in 2023 and further rising to 2132 million USD in 2024. Overall, the cash assets did not maintain consistency and showed pronounced volatility.
- Current Liabilities
- Current liabilities showed a generally increasing trend, starting from 8223 million USD in 2020 and rising steadily to 9521 million USD in 2024. There was a slight dip observed in 2022 to 7757 million USD, representing a temporary decrease in short-term obligations. However, the liabilities increased again in 2023 and 2024, suggesting an overall growth in the company's current obligations over the period.
- Cash Ratio
- The cash ratio, which measures the company's ability to cover its current liabilities with cash assets, followed a pattern consistent with changes observed in cash assets and current liabilities. The ratio increased from 0.24 in 2020 to a peak of 0.33 in 2021, reflecting improved liquidity. However, it plummeted to 0.13 in 2022, indicating a weakened liquidity position. A slight recovery occurred in the following years, with the ratio increasing to 0.16 in 2023 and further to 0.22 in 2024. Despite the recovery, the ratio remained below the level seen in 2021, suggesting that liquidity, although improving, had not fully returned to earlier levels.