Occidental Petroleum Corp. (NYSE:OXY)

Current Ratio

The current ratio demonstrated variability throughout the analyzed period, starting at 1.18 in March 2020 and declining to a low of 0.85 in June 2020. Subsequently, it showed a recovery trend, reaching a peak of 1.34 in June 2021. After that peak, the ratio experienced some fluctuations, mostly moving around the range of 1.0 to 1.15 through late 2022 and early 2023. From mid-2023 to early 2025, the current ratio exhibited a downward bias initially, dipping below 1.0, but with a modest recovery back to slightly above 1.0 by March 2025. Overall, the ratio indicates moderate short-term liquidity with intermittent improvements and declines but generally hovering near the 1.0 mark, suggesting balance between current assets and liabilities.

Quick Ratio

The quick ratio followed a generally positive trajectory over the reported intervals. Starting at a relatively low 0.37 in March 2020, it increased steadily to reach a high point of 0.84 by December 2021. Following this peak, the quick ratio saw some declines, reaching a low near 0.45 in mid-2023, before beginning a recovery trend that pushed the ratio up to 0.71 by March 2025. This pattern represents a gradual strengthening in the company's ability to cover short-term liabilities with more liquid assets, excluding inventories. The fluctuations during 2022 to 2023 suggest some volatility in liquid assets or current liabilities, but the longer-term trend is upward.

Cash Ratio

The cash ratio showed considerable fluctuations and generally remained at lower levels relative to other liquidity measures. It began at 0.17 in March 2020, dropped to 0.10 by June 2020, and then increased to 0.48 by June 2021, marking a significant spike in cash or cash equivalents relative to current liabilities. However, after this peak, the ratio declined notably, fluctuating mostly between 0.07 and 0.22 throughout 2022 and 2023, before recovering gradually to 0.27 in March 2025. These variations suggest changes in the company's cash holdings or immediate liquidity, with periods of stronger cash reserves followed by more constrained cash positions. The overall low levels indicate a relatively conservative cash buffer over liabilities.

Current Assets

The current assets exhibit notable fluctuations throughout the observed periods. Beginning at approximately 14.1 billion USD in the first quarter of 2020, there is a sharp decline to around 8.4 billion USD by the second quarter of 2020. Following this trough, current assets generally recover with some volatility, peaking again near 12.8 billion USD in mid-2021. Subsequent periods show a general decreasing trend into early 2023, where the value drops to around 7.5 billion USD. Afterward, there is a moderate recovery leading to values consistent around 8.3 to 10.1 billion USD through 2024 and into early 2025.

Current Liabilities

Current liabilities also fluctuate over the observed timeframe but within a narrower range compared to current assets. Starting near 12.0 billion USD in the first quarter of 2020, liabilities experience a slight decline, reaching a low in the last quarter of 2020 near 8.2 billion USD, followed by variable movements around 8.6 to 9.6 billion USD in subsequent quarters. The liabilities trend remains relatively stable with minor increases through 2023 and early 2024, maintaining levels close to 9.0 to 9.7 billion USD by the end of the observation period.

Current Ratio

The current ratio, which measures liquidity by comparing current assets to current liabilities, begins slightly above 1.0 at 1.18 in early 2020 but drops sharply in mid-2020 to 0.85, indicating a decrease in short-term liquidity. This liquidity measure improves steadily through late 2020 and 2021, reaching peaks such as 1.34 in mid-2021, signaling strong short-term financial health. From late 2021 into mid-2023, the ratio fluctuates around 1.0 to 1.15, suggesting relatively balanced liquidity. However, a decline below 1.0 occurs from mid-2023 through early 2024, with values as low as 0.92, highlighting potential liquidity pressure. There is modest recovery towards the end of 2024 and into the first quarter of 2025, with the ratio approaching and slightly exceeding 1.0 again.

Overall Analysis

The company’s short-term financial position appears to have undergone significant stress during the early phase of the period, particularly in mid-2020, likely reflecting an external environment impact. Recovery in current assets followed, improving liquidity notably in 2021. The subsequent periods show a stabilization pattern, though with a trend towards slightly tighter liquidity in 2023 and early 2024. The data suggests a prudent approach to managing current liabilities alongside fluctuating current assets, with ongoing attention needed to maintain sufficient liquidity levels above the critical threshold of 1.0 to ensure short-term obligations can be met comfortably.

The analysis of the quarterly financial data reveals several important trends regarding liquidity and short-term financial stability over the examined periods.

Total Quick Assets

The total quick assets fluctuated significantly throughout the timeline. Initially, there was a decline from 4,479 million USD at the end of March 2020 to 3,370 million USD by June 2020, followed by a general upward movement with intermittent decreases. The peak was observed around mid-2022 with values over 7,700 million USD. Subsequently, the quick assets declined to a low in mid-2023, then moderately increased again toward the first quarter of 2025, reaching approximately 6,878 million USD. The fluctuations suggest variable short-term asset availability possibly influenced by market conditions or internal operational adjustments.

Current Liabilities

Current liabilities showed a downward trend from March 2020's 11,963 million USD to a trough at the end of 2020 at 8,223 million USD. Post-2020, liabilities hovered between roughly 7,400 million and 9,700 million USD, showing relative stability with minor oscillations. Notably, after a drop during late 2021 to early 2022, current liabilities exhibited cyclical increases and decreases but stabilized around the 9,500 to 9,600 million USD range toward 2025. This trend suggests active management of short-term obligations, with no extreme spikes or drops in recent years.

Quick Ratio

The quick ratio, indicating the ability to cover current liabilities with quick assets, started relatively low at 0.37 at the end of March 2020 and declined slightly to 0.34 in mid-2020. A marked improvement occurred by the end of 2020, climbing to 0.50, and experienced an upward trend through 2021, reaching as high as 0.84 by December 2021. The ratio then slightly decreased during 2022 and 2023, falling to around 0.45 to 0.68, indicative of tightening liquidity. The latest data from 2024 to early 2025 shows a gradual increase, with the ratio moving from 0.52 up to 0.71. Overall, while the quick ratio reflects variability, there is a general trend toward strengthening liquidity in recent quarters compared to the earlier periods.

In summary, the data illustrates a pattern of fluctuating quick assets aligned with cyclical changes in current liabilities, leading to variable but overall improving quick liquidity ratios. The company has demonstrated enhanced capacity to meet short-term obligations over the long term despite some volatility. These trends may relate to broader economic factors, operational cash flow changes, or strategic financial management decisions impacting liquidity positions.

The financial data reflects fluctuations in liquidity and current liabilities over multiple quarterly periods. The total cash assets exhibit notable volatility, with several peaks and troughs observed throughout the timeframe. Initially, there is a decrease from over two billion USD to approximately one billion USD by mid-2020, followed by a recovery reaching near four and a half billion USD in mid-2021, then a general decline extending into late 2022. Subsequently, total cash assets show modest variability around the one billion USD mark with some upward movement towards early 2025.

Current liabilities demonstrate a somewhat stable but slightly decreasing trend relative to the first quarter of 2020. Although there are periodic fluctuations, the amounts generally hover below the initial level of nearly twelve billion USD, maintaining a range between approximately seven and a half billion to just under ten billion USD in later quarters. Despite some quarters exceeding nine billion USD, there is no clear sustained increase or decrease, indicating relative continuity in current liabilities.

The cash ratio, which measures liquidity by comparing cash assets to current liabilities, shows varying patterns aligned with the changes in cash assets. Starting at a low point of 0.10 in mid-2020, the ratio peaks near 0.48 in mid-2021 aligning with the cash asset peak, reflecting improved short-term liquidity at that time. Following this, the cash ratio decreases steadily and remains relatively low across late 2021 through 2023, with occasional minor improvements. In the most recent quarters, a gradual increase is observable, rising from 0.18 in early 2024 to 0.27 by the first quarter of 2025, suggesting a strengthening liquidity position.

Total cash assets

Displayed considerable variability, with sharp declines and recoveries, peaking mid-2021, followed by a gradual downward trend and modest recovery thereafter.

Current liabilities

Remained relatively stable with some fluctuations, maintaining a fairly consistent range slightly below the levels observed in early 2020.

Cash ratio

Varied in response to changes in cash assets and liabilities, achieving a high in mid-2021, dipping throughout 2022 and 2023, and indicating gradual improvement in liquidity in early 2024 through early 2025.