Occidental Petroleum Corp. (NYSE:OXY)

Debt to Equity Ratios

The debt to equity ratio showed an initial upward trend from 1.23 in the first quarter of 2020, peaking near 1.97 during mid-2021. Following this peak, the ratio consistently decreased, reaching a low around 0.62 by the middle of 2024, with slight fluctuations thereafter. When including operating lease liabilities, the pattern is very similar, with marginally higher values but the same general rise and subsequent decline.

Debt to Capital Ratios

Debt to capital ratios followed a comparable trajectory, increasing from 0.55 in early 2020 to a peak of approximately 0.67 by mid-2021. After this, the ratios steadily declined, reaching around 0.38 by late 2024. The inclusion of operating lease liabilities resulted in slightly elevated debt to capital ratios but mirrored the overall trend closely, indicating improving capital structure efficiency over time.

Debt to Assets Ratios

Debt to assets ratios indicated a steady increase from 0.38 early in 2020 to about 0.46 by late 2020, remaining stable through mid-2021. Subsequently, these ratios declined steadily to approximately 0.26 by mid-2024, with a minor increase noted towards the end of the period analyzed. Including operating lease liabilities caused a small increase in the ratio values but did not change the general downward trend after 2021.

Financial Leverage

The financial leverage ratio was relatively high at 3.25 in early 2020, rising steadily to a peak exceeding 4.3 during 2021. After this peak, it decreased sharply, settling near 2.36 by mid-2025. This trend reflects a significant reduction in leverage over the observed period, suggesting deleveraging and possibly improved asset base or equity growth.

Interest Coverage Ratio

Interest coverage ratios started with negative values in late 2020, reflecting poor earnings relative to interest expense. This situation improved markedly over the following quarters, turning positive by early 2021 and increasing steadily to a peak around 15 during late 2022 and early 2023. Subsequent periods saw a gradual decline, with ratios stabilizing between 3.8 and 7.0 in 2024 and mid-2025, indicating a return to more moderate but still positive earnings coverage of interest obligations.

Total Debt

The total debt level demonstrated a gradual decline from March 31, 2020, when it stood at $38,522 million, to December 31, 2021, reaching $29,617 million. This downward trend continued through the subsequent years, with some fluctuations, culminating in a value of $23,775 million by June 30, 2025. Notably, there was a significant decrease between March 31, 2022 ($26,372 million) and December 31, 2022 ($19,835 million). After a period of relative stability between 2023 and early 2024, debt increased again in the latter part of 2024, peaking at $26,635 million on September 30, 2024, before declining once more.

Stockholders’ Equity

Stockholders’ equity showed a different dynamic, initially decreasing sharply from $31,295 million at the end of Q1 2020 to $18,573 million by the end of Q4 2020. Post this low point, equity began a consistent upward trajectory, increasing steadily each quarter and reaching $30,250 million by December 31, 2023. The growth persisted thereafter, with equity peaking at $35,722 million by mid-2025. This indicates a strengthening in the company’s net asset base over the period following the early 2020 decline.

Debt to Equity Ratio

The debt to equity ratio fluctuated in consonance with changes in debt and equity levels. It started at 1.23 in March 2020, peaked substantially at 1.97 in the first half of 2021, reflecting relatively higher debt against equity. Following this peak, the ratio decreased steadily as equity rose and debt fell, reaching a low around 0.62 in the third quarter of 2024. However, during late 2024, the ratio increased again to approximately 0.77, correlating with the noted rise in debt, before dropping slightly to 0.67 by mid-2025. This pattern suggests an improved financial leverage position for much of the period, with some resurgence in leverage towards the end.

Total Debt (Including Operating Lease Liability)

Total debt showed a gradual decline from March 31, 2020, starting at approximately $38,975 million, decreasing steadily through 2021 and 2022, reaching around $20,108 million by December 31, 2022. This suggests an active reduction of debt over this period. However, beginning in early 2024, a notable increase is observed with debt rising from roughly $20,172 million in June 2024 to a peak near $27,011 million by March 31, 2025. Following this peak, debt slightly declines but remains elevated compared to the earlier low point, ending at about $24,174 million by June 30, 2025.

Stockholders’ Equity

Stockholders’ equity experienced an overall upward trend during the period analyzed. Initially, equity decreased from approximately $31,295 million in March 2020 to a low near $18,244 million in the second quarter of 2021. From that point forward, equity consistently increased, reaching around $30,085 million by December 31, 2022. This positive trajectory continued into 2024 and 2025, with equity rising steadily and peaking at approximately $35,722 million in June 2025. This trend indicates strengthening shareholder value over the examined time frame.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio initially rose sharply from 1.25 in March 2020 to a maximum near 1.99 during the first half of 2021, reflecting relatively higher leverage compared to equity. Starting mid-2021, the ratio declined significantly, reaching a low of about 0.63 by September 2024, consistent with the period of debt reduction and equity growth. Subsequently, the ratio rebounded slightly to approximately 0.78 by March 2025, coinciding with the increase in total debt noted earlier. By June 30, 2025, the ratio decreased again to around 0.68.

Overall Observations

The data presents a clear pattern of deleveraging from mid-2020 through late 2023, characterized by consistent debt repayment and growth in stockholders’ equity, leading to improved financial stability as evidenced by a declining debt to equity ratio. The upward movement in total debt starting in early 2024 suggests a strategic shift or increased borrowing, possibly for investment or operational purposes, while equity growth persisted. The fluctuating debt to equity ratio in the recent periods reflects these mixed movements in debt and equity balances. The financial metrics suggest a company initially focused on reducing leverage and strengthening equity, followed by a cautious increase in leverage while maintaining equity gains.

The analysis of the quarterly financial data reveals several notable trends and shifts in the company's debt and capital structure over the observed periods.

Total Debt

Total debt displayed a general downward trend from March 31, 2020, through the middle of 2024. Initially, total debt was recorded at approximately US$38.5 billion in early 2020, with a modest decrease through 2021, reaching around US$29.6 billion by the end of that year. This declining pattern continued more sharply in 2022, with total debt falling to roughly US$19.8 billion by year-end and maintaining a similar level through the first half of 2023. However, from mid-2024 onward, there is a discernible uptick in total debt, rising from approximately US$19.7 billion to US$26.6 billion by September 2024, before experiencing a moderate subsequent decline to about US$23.8 billion by mid-2025.

Total Capital

Total capital started at around US$69.8 billion in early 2020 and then declined steadily each quarter until early 2021, reaching approximately US$54.3 billion. It continued to decrease through 2021, hitting near US$49.9 billion by year-end. The capital levels then somewhat stabilized and showed minor fluctuations around the US$49–51 billion range throughout 2022 and early 2023. From mid-2023 forward, total capital exhibited a moderate upward trend, rising to about US$51.8 billion by the end of 2023, and then a marked increase occurred in 2024, peaking near US$61.3 billion in March 2025. Subsequently, total capital showed a marginal decrease but remained elevated near US$59.5 billion by mid-2025.

Debt to Capital Ratio

The debt to capital ratio, an important leverage metric, demonstrated significant variation reflecting the movements of both total debt and total capital. It increased from 0.55 in March 2020 to a peak of 0.66 by September and December 2020, indicating higher leverage during this period. Starting in 2021, the ratio declined steadily, dropping to around 0.40 by late 2022 and early 2023, consistent with the reduction in total debt and stabilization of capital. This lower leverage was maintained through the first half of 2024. However, the ratio rose again in late 2024, reaching approximately 0.43, correlating with the increase in total debt. By mid-2025, the ratio eased back to near 0.40, suggesting a reduction in leverage or an increase in capital relative to debt.

Overall, the data indicate a strategic reduction of debt relative to capital from 2020 through early 2023, followed by a period of increased borrowing in late 2024, which was then partially reversed by mid-2025. The total capital base experienced a long-term decline initially, stabilizing and then expanding significantly in the latest periods. The fluctuations in the debt to capital ratio reflect these dynamics and suggest a flexible approach to capital structure management responsive to changing financial conditions.

Total Debt (including operating lease liability)

The total debt level remained relatively stable around $38.9 billion during the first three quarters of 2020, then declined steadily through 2021 and into the first quarter of 2024, reaching approximately $20.1 billion by December 2023. From that point onward, the total debt slightly increased again, peaking at about $27 billion in March 2025, before resuming a downward trend to approximately $24.2 billion by June 2025. Overall, the trend shows a significant debt reduction from 2020 to early 2024, with some volatility and a brief reversal of the declining pattern in 2024 and early 2025.

Total Capital (including operating lease liability)

Total capital exhibited a downward trend from nearly $70.3 billion in March 2020 to about $49.6 billion by December 2023. It then experienced a reversal, increasing modestly in 2024 to reach a peak of approximately $61.7 billion by March 2025. Subsequently, capital levels slightly declined but remained elevated near $59.9 billion as of June 2025. This pattern indicates an initial capital base contraction lasting through 2023, followed by a period of capital restoration and growth in early 2024 and 2025.

Debt to Capital Ratio (including operating lease liability)

The debt-to-capital ratio started at 0.55 in March 2020 and worsened, peaking at approximately 0.67 in the first half of 2021, reflecting an increase in leverage during that period. After mid-2021, the ratio steadily improved, declining to roughly 0.40 by December 2023, signaling deleveraging and improved capital structure. However, in 2024, the ratio increased to around 0.44 and remained at that level through early 2025, before declining again to 0.40 by June 2025. This fluctuation corresponds to the temporary increase in total debt and capital levels seen in 2024 and early 2025, suggesting short-term shifts in leverage management.

Overall Analysis

The data reveals an initial phase of stable but high debt and capital levels in early 2020, followed by significant debt reduction and declining capital base through 2023. The improved debt-to-capital ratio during this time indicates a strengthening balance sheet. However, the period from 2024 into early 2025 shows a reversal of these trends, with an increase in both debt and capital, resulting in a temporarily higher leverage ratio. By mid-2025, the company appears to be resuming its focus on deleveraging, as indicated by the declining debt and improved debt-to-capital ratio. These trends suggest active financial management efforts to optimize capital structure in response to changing financial conditions over time.

Total Debt

Total debt exhibited a gradual declining trend from March 2020 through December 2021, decreasing from approximately $38.5 billion to around $29.6 billion. This reduction continued through 2022 and early 2023, reaching a low near $19.7 billion by the end of 2023. However, from March 2024 onwards, total debt showed a noticeable increase, climbing to about $26.6 billion by September 2024, before resuming a downward adjustment towards $23.8 billion by June 2025.

Total Assets

Total assets demonstrated a declining trend initially, dropping from roughly $101.6 billion in March 2020 to around $71.6 billion by early 2023. Subsequently, a recovery phase began, with total assets increasing steadily through 2023 and 2024, peaking at approximately $85.8 billion in March 2025. At the latest point in June 2025, total assets slightly decreased yet remained above $84.3 billion, maintaining a higher level relative to the early 2020s.

Debt to Assets Ratio

The debt to assets ratio rose from 0.38 in March 2020 to a peak of 0.46 by September 2020, signaling increased leverage during that period. Thereafter, the ratio steadily declined throughout 2021 and into 2023, reaching a low near 0.26 in mid-2024, indicating a significant reduction in relative debt burden. From that point, the ratio increased again to approximately 0.31 through the latter part of 2024 and early 2025, before a slight reduction to 0.28 in June 2025.

Overall Analysis

The data reflect a strategy of debt reduction and asset base contraction during the initial recovery phase post-2020, likely reflecting adjustments to market conditions. Following this, an asset rebuilding phase is evident, accompanied by an increased but controlled debt level, as illustrated by the rise and subsequent stabilization of the debt to assets ratio. The trends suggest ongoing balance sheet optimization with fluctuations potentially related to capital expenditure cycles or market-driven financing decisions.

Total Debt (including operating lease liability)

The total debt value demonstrated a decreasing trend from March 2020 through June 2024, falling from approximately $38,975 million to around $20,147 million. This reduction was steady and consistent over the initial years, indicating a deliberate effort to reduce leverage. However, after June 2024, total debt rose again, reaching approximately $27,011 million by March 2025 before slightly declining to about $24,174 million by June 2025. This uptick after a prolonged period of decline suggests a possible strategic shift or increased borrowing during the last few quarters reported.

Total Assets

Total assets decreased markedly from $101,643 million in March 2020 to a low near $71,199 million by December 2022, reflecting a contraction phase or asset sales. Beginning in early 2023, total assets stabilized, fluctuating around the low $70,000 million range. Subsequently, from late 2023 through the first half of 2024, assets began to increase steadily, peaking near $85,803 million in March 2025. This growth indicates asset acquisition or asset revaluation contributing positively to the balance sheet size during the most recent periods.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio exhibited an initial increase from 0.38 in March 2020 to a peak of around 0.46 during 2020 and early 2021, signaling a rise in leverage relative to the asset base. From mid-2021, this ratio declined steadily, hitting a trough near 0.26 by September 2024, consistent with the reduction in total debt and initially declining asset base. However, from late 2024 onwards, the ratio rose again to values around 0.31 by mid-2025, reflecting the recent rise in total debt alongside asset growth. The fluctuations in this ratio underscore phases of deleveraging followed by partial re-leveraging.

Summary

Overall, the data shows a strategic pattern of reducing debt from early 2020 until mid-2024, coinciding with a decline and stabilization in total assets. The subsequent period depicts a reversal with rising debt and increasing assets, suggesting a new phase of growth or investment supported by additional borrowing. The debt to asset ratio movements reinforce this dual phase of deleveraging followed by moderate re-leveraging, indicating dynamic balance sheet management aligned with changing financial or operational priorities.

Total Assets

Total assets demonstrated a declining trend from March 31, 2020, through September 30, 2022, decreasing from approximately $101.6 billion to about $72.1 billion. This initial downward trajectory indicates a significant reduction in asset base over this period. From late 2022 onward, total assets stabilized around the low $70 billion range before trending upward starting December 31, 2023. The increase accelerated through 2024, reaching approximately $85.8 billion by March 31, 2025. This suggests a phase of asset growth or acquisition following a period of contraction, reflecting possible strategic investments or asset accumulation.

Stockholders’ Equity

Stockholders’ equity showed a pronounced decrease from March 31, 2020, $31.3 billion, to December 31, 2020, when it bottomed near $18.6 billion, coinciding with a reduction in total assets over this period. After this decline, shareholders' equity began a steady recovery, increasing consistently from early 2021, with a notable acceleration after December 31, 2021, reaching $34.7 billion by March 31, 2025. This upward trend reflects growth in net worth and possibly retained earnings or capital injections, indicating improving financial strength and stability over the latter quarters.

Financial Leverage

The financial leverage ratio, calculated as total assets divided by stockholders’ equity, peaked at 4.38 in the second quarter of 2021 after a general rising trend through 2020. This indicates a higher reliance on debt relative to equity during that time, coinciding with the declining equity base. Subsequently, leverage decreased substantially from 2021 onward, falling to approximately 2.36 by June 30, 2025. This reduction in leverage suggests an improvement in the capital structure, with a stronger equity position relative to total assets and potentially reduced financial risk.

Earnings before interest and tax (EBIT)

The EBIT demonstrates significant volatility throughout the analyzed periods. Beginning with substantial negative values in early 2020, notably -1686 million in March and -7874 million in June, a marked recovery trend initiates from the first quarter of 2021. From March 2021 onward, EBIT shifts into positive territory, showing steady growth and reaching a peak of 5100 million in June 2022. Following this peak, a gradual decline is observed with moderate fluctuations, stabilizing around the 1500 to 2000 million range towards the end of 2023 and early 2024. However, the last quarters of the dataset reflect a renewed decrease in EBIT, dropping sharply to 158 million by the first quarter of 2025.

Interest and debt expense, net

Interest and debt expenses exhibit moderate variability over the studied quarters but generally maintain a narrower range relative to EBIT fluctuations. Expenses begin around the mid-300 million mark in early 2020 with minor oscillations. A noticeable dip occurs in June 2022, reducing to 114 million, which likely contributed to improved coverage ratios observed later. Subsequent quarters present a recovery in the expense amount, fluctuating mainly between 230 and 320 million, with no clear increasing or decreasing trend but rather consistent expense management.

Interest coverage ratio

The interest coverage ratio correlates strongly with EBIT movements, reflecting substantial improvement over time. Initial negative ratios in 2020 signify inability to cover interest expenses from operating earnings, with figures reaching as low as -10.03. Starting in late 2020 and continuing through 2022, the ratio improves dramatically, surpassing 5.0 by March 2022 and peaking around 15.23 in September 2022. This indicates enhanced financial health and reduced risk of default on debt obligations. After this peak, the ratio gradually declines, moving down to approximately 3.83 by June 2025, signaling a weakening, although still positive, ability to meet interest expenses from EBIT.

Overall analysis

The data reveal a company transitioning from severe operational losses in early 2020 to robust profitability and strong interest coverage by mid-2022. Despite subsequent moderate decline in EBIT and coverage, financial stability remains adequate, with EBIT consistently outpacing interest expenses. Interest and debt expenses have been relatively well-controlled, contributing to improved interest coverage. Recent quarters suggest some emerging challenges with EBIT weakening and interest coverage declining, which merits ongoing monitoring to sustain financial health.