Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-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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Solvency Ratios (Summary)
Occidental Petroleum Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Debt to equity ratio
- The debt to equity ratio showed an increasing trend from 1.23 in March 2020, peaking at 1.97 during the first half of 2021. Subsequently, it declined steadily to around 0.64-0.68 between late 2021 and early 2024, before experiencing a slight rise to approximately 0.76-0.77 in early 2025.
- Debt to equity ratio (including operating lease liability)
- This metric closely mirrored the trend of the debt to equity ratio without lease liabilities, starting at 1.25 in March 2020 and peaking at 1.99 in mid-2021. It then declined to a range of 0.63-0.69 through 2023 and early 2024, followed by a minor increase toward 0.75-0.78 by early 2025.
- Debt to capital ratio
- Debt to capital increased from 0.55 in March 2020 to a high of 0.66 in late 2020 and early 2021, before gradually decreasing to a low of 0.38 in mid-2024. Towards the end of the data series, a slight rebound to approximately 0.42-0.43 was observed.
- Debt to capital ratio (including operating lease liability)
- This ratio followed a similar pattern to the standard debt to capital ratio, beginning at 0.55 in early 2020 and rising to 0.67 in mid-2021. It declined to around 0.39 by mid-2024, followed by a slight increase to approximately 0.43-0.44 in early 2025.
- Debt to assets ratio
- The debt to assets ratio climbed from 0.38 in early 2020 to a peak of 0.46 in late 2020, then steadily declined over the subsequent years to approximately 0.26-0.28 during 2023 and early 2024. A minor uptick to about 0.30-0.31 occurred towards early 2025.
- Debt to assets ratio (including operating lease liability)
- This ratio tracked similarly to the debt to assets measure without lease liabilities, moving from 0.38 in early 2020 to 0.46 in late 2020. It gradually declined to around 0.26 by mid-2024, then saw a slight increase to approximately 0.31 near early 2025.
- Financial leverage
- Financial leverage rose steadily from 3.25 in March 2020 to a peak of approximately 4.38 in mid-2021. Following this peak, it decreased gradually to around 2.38 to 2.50 through early 2025, indicating a material reduction in leverage over these periods.
- Interest coverage ratio
- Interest coverage was negative in the final quarters of 2020, reaching a low of –10.03. It then improved consistently through 2021 and into 2022, rising above 5 by mid-2022 and peaking near 15 by the end of 2022 and early 2023. From 2023 onward, the ratio gradually declined to a range between 4.46 and 6.94 by early 2025, reflecting a moderately reduced ability to cover interest expenses compared to its peak performance.
Debt Ratios
Coverage Ratios
Debt to Equity
Occidental Petroleum Corp., debt to equity calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, net, excluding current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveal significant fluctuations in the company's capital structure over the analyzed period. Total debt showed a general declining trend from March 2020 through June 2024, decreasing from approximately $38.5 billion to around $19.7 billion by the end of 2023. However, beginning in the first quarter of 2025, total debt increased notably again, surpassing $26.5 billion by the third quarter of 2025.
Stockholders' equity initially declined sharply from about $31.3 billion in the first quarter of 2020 to approximately $18.3 billion by the first quarter of 2021. Subsequently, equity exhibited a consistent upward movement, increasing steadily to a peak near $34.7 billion by the first quarter of 2025. Minor fluctuations are present, but the overall pattern reflects strengthening equity over the later periods.
The debt to equity ratio aligns with these observations. It started relatively low at around 1.23 in early 2020, then rose substantially to nearly 1.97 by mid-2021, indicating increased leverage. Following this peak, the ratio declined continuously, reaching a low near 0.62 in late 2024, suggesting a considerably reduced leverage position and improved financial stability. However, the ratio climbed again to approximately 0.77 in the first quarter of 2025, corresponding with the rebound in total debt and slight dip in equity.
- Total Debt
- Exhibited a prominent decrease from early 2020 through late 2024, reflecting debt reduction initiatives or repayments. The increase observed in 2025 may indicate new financing or increased borrowing.
- Stockholders’ Equity
- After an initial decline in 2020 and early 2021, equity strengthened progressively, suggesting improved retained earnings, asset growth, or capital injections over the subsequent years.
- Debt to Equity Ratio
- Reflected the interplay of debt and equity dynamics, rising sharply in 2020-2021, then falling as equity improved and debt reduced, before increasing again in early 2025, which may warrant attention for future leverage and risk assessment.
Debt to Equity (including Operating Lease Liability)
Occidental Petroleum Corp., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
The financial data reveals significant shifts in key metrics over the observed quarters. A clear trend is seen in the total debt figures, which initially display stability around the range of approximately US$38,000 million in the early 2020 period. Following this, there is a steady decline in total debt through 2021 and most of 2022, reaching a low point near US$20,000 million by the end of 2022 and maintaining a relatively stable level through mid-2024. However, there is a noticeable increase in total debt in the later quarters of 2024, reaching above US$27,000 million before slightly decreasing again.
Stockholders’ equity demonstrates a contrasting pattern. Starting at around US$31,000 million in early 2020, it experiences a decline through 2020, bottoming out near US$18,000 million by the first quarter of 2021. From that point onward, stockholders' equity gradually increases, climbing steadily to over US$34,000 million by early 2025. This indicates an overall strengthening in equity capital over the period after the initial decline.
The debt to equity ratio, incorporating operating lease liabilities, closely mirrors the interplay between total debt and equity. The ratio shows a rising trend from 1.25 early in 2020, peaking close to 2.0 by the first half of 2021, reflecting increased leverage. Subsequently, the ratio decreases significantly throughout 2021 and 2022, reaching lows around 0.63 to 0.68, indicative of deleveraging and an improving balance sheet structure. Towards the latter part of the timeframe, the ratio increases again to around 0.78, corresponding with the uptick in total debt, but remains well below the peak levels seen in 2021.
- Total Debt
- Shows an initial period of stability followed by consistent reduction, then a slight recovery in late 2024.
- Stockholders’ Equity
- Declines through 2020 into early 2021 and then steadily grows, reflecting improved capital base by early 2025.
- Debt to Equity Ratio
- Rises sharply through early 2021 indicating higher leverage, then decreases substantially indicating deleveraging, and finally rises moderately again near 2024's end.
Overall, the data points to a phase of increased financial risk during 2020 and the first half of 2021, followed by strategic deleveraging and equity build-up, promoting a stronger financial position. The late 2024 increase in total debt and the corresponding rise in leverage suggest renewed borrowing activity that warrants monitoring for its impact on the company's capital structure going forward.
Debt to Capital
Occidental Petroleum Corp., debt to capital calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, net, excluding current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt level remained relatively stable during the early part of the period, fluctuating slightly around the 38,000 million US dollar mark from March 2020 through June 2021. Thereafter, a notable declining trend is observed, with total debt decreasing steadily from approximately 36,000 million in December 2020 to about 19,700 million by December 2023. This indicates a significant reduction in debt over three years. However, starting from March 2024, total debt shows an uptick again, increasing to over 26,000 million by March 2025, suggesting renewed borrowing or other debt-incurring activities.
- Total Capital
- Total capital demonstrates an overall declining trend from the beginning of the period until December 2021, dropping from nearly 70,000 million to just under 50,000 million US dollars. Following this period, total capital stabilizes somewhat, fluctuating around 49,000 to 51,000 million through the end of 2023. In 2024, there is a marked increase in total capital, peaking at over 61,000 million by March 2025. This rise in total capital towards the end of the timeline indicates a strengthening capital base, potentially through equity increases, retained earnings, or other capital infusion methods.
- Debt to Capital Ratio
- The debt to capital ratio starts at 0.55 in March 2020 and increases to a peak of 0.66 by September 2020, maintaining this level through June 2021. This suggests that during this period debt grew faster than capital, increasing financial leverage. Subsequently, the ratio declines steadily, reaching a low of approximately 0.38 by September 2024, reflecting the reduction in debt relative to the capital base. However, this declining leverage trend reverses in the last few quarters, with the ratio rising back to around 0.43 by March 2025. This corresponds with the noted increase in total debt and total capital during that period, but with debt growing proportionally faster than capital once again.
- Summary of Trends
- Initially, the company maintains a relatively high leverage ratio with stable debt and decreasing capital, increasing financial risk. From mid-2021 to late 2023, a concerted effort is apparent in reducing debt and stabilizing capital, significantly lowering leverage and likely improving financial stability. The recent rise in both debt and total capital from early 2024 suggests a shift towards increased investment or financing activity, resulting in moderately increased leverage. Monitoring these recent trends will be important to assess the company's risk exposure and capital management strategies going forward.
Debt to Capital (including Operating Lease Liability)
Occidental Petroleum Corp., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
- Total Debt (Including Operating Lease Liability)
- The total debt exhibits a downward trend from March 2020 through June 2024, starting at 38,975 million USD and decreasing steadily to 20,147 million USD by mid-2024. This reduction suggests ongoing debt repayments or refinancing activities aimed at lowering leverage. However, an upward shift is noticeable beginning in September 2024, where debt increases from 20,147 million USD to 27,011 million USD in March 2025, indicating a possible new debt issuance or increased borrowing during the latter part of the period.
- Total Capital (Including Operating Lease Liability)
- Total capital shows a decreasing trend from the first quarter of 2020, falling from 70,270 million USD to below 50,000 million USD by early 2022. From that point onward, total capital stabilizes somewhat in the low 50,000s until mid-2024. Noticeably, there is a significant increase after June 2024, with values rising sharply to 61,699 million USD by March 2025. This uptrend in total capital could be linked to the concurrent increase in total debt, possibly due to new capital raised via debt or equity financing.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio rises from 0.55 in March 2020 to peak levels around 0.67 during early to mid-2021, indicating relatively high leverage during that period. Subsequently, the ratio displays a steady decline, reaching a low of roughly 0.39 by mid-2024, which corresponds with the decreases in total debt and relatively stable capital base. However, this ratio again climbs to about 0.44 toward the end of 2024 and into early 2025, consistent with the observed increases in total debt and total capital during the same interval. The fluctuations in the debt to capital ratio reflect shifts in the company's leverage and financial strategy over the analyzed period.
Debt to Assets
Occidental Petroleum Corp., debt to assets calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current maturities of long-term debt | ||||||||||||||||||||||||||||
| Long-term debt, net, excluding current maturities | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a general downward trend from March 31, 2020, to December 31, 2023, starting at $38,522 million and decreasing steadily to approximately $19,738 million. This decline indicates a consistent reduction in liabilities over this period. However, from March 31, 2024, total debt rises again, reaching $26,594 million by September 30, 2024, before slightly declining to $25,594 million by March 31, 2025. This rebound may suggest increased borrowing or changes in capital structure in early 2024 after several years of deleveraging.
- Total Assets
- Total assets initially decrease sharply from $101,643 million in March 31, 2020, to $71,199 million by December 31, 2022. This decline reflects a reduction of about 30% in asset base over nearly three years. After this low point, assets exhibit a gradual recovery, rising to $74,008 million by December 31, 2023, and continuing upward to a peak of $85,803 million by September 30, 2024. Subsequently, there is a slight decrease to $84,967 million by March 31, 2025. The initial asset contraction followed by recovery might reflect asset divestitures, depreciation, or other operational adjustments, followed by reinvestment or appreciation in asset values.
- Debt to Assets Ratio
- The debt to assets ratio starts at 0.38 in March 31, 2020, rising to a peak of 0.46 in September 30, 2020, indicating increased leverage during that period. Thereafter, the ratio declines consistently, reaching a low of 0.26 by September 30, 2024. This trend corresponds with the overall decrease in total debt relative to total assets, reflecting an improved balance sheet leverage position. However, there is a minor uptick to around 0.31 by March 31, 2025, aligning with the recent increase in total debt. Overall, the ratio trend suggests enhanced financial stability over the medium term, with a slight reversal in early 2024.
Debt to Assets (including Operating Lease Liability)
Occidental Petroleum Corp., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
The analysis of the quarterly financial data reveals several notable trends in the company's debt levels, assets, and leverage ratios over the observed periods.
- Total Debt (including operating lease liability)
- The total debt remained relatively stable around the 38,000 million USD mark in early 2020, followed by a gradual but consistent reduction throughout 2020 and 2021. This declining trend continued into early 2022, reaching approximately 20,000 million USD by late 2022 and maintaining a level close to 20,000 million USD through most of 2023 and early 2024. However, starting mid-2024, there is a marked increase in debt, rising to around 27,000 million USD and slightly declining but remaining elevated towards the first quarter of 2025.
- Total Assets
- Total assets exhibited a downward trajectory from over 101,000 million USD at the start of 2020 to approximately 72,000 million USD by late 2022. This reduction slowed down and showed slight fluctuations but generally remained within the range of 71,000 to 74,000 million USD through 2023 and early 2024. From mid-2024 onwards, assets showed a noticeable increase, peaking near 86,000 million USD late in 2024 before a marginal decline to roughly 85,000 million USD by early 2025.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio started at 0.38 in early 2020, increasing to a peak of 0.46 mid-2020 through early 2021, reflecting a period in which debt levels were relatively high compared to assets. From mid-2021, the ratio steadily declined to a low of about 0.26 by mid-2024, corresponding to the simultaneous decrease in debt and relatively stable asset base. Interestingly, there is a subsequent rebound in the ratio to about 0.31 in the last two reported quarters, indicating a relative increase in leverage compared to assets during this period.
Overall, the financial data indicates a phase of debt reduction and asset contraction from 2020 to early 2024, contributing to a lower leverage ratio. However, the latter part of the observed timeline shows a reversal with increased debt and asset growth that raises the leverage metrics once again. These movements may reflect strategic financial decisions, market conditions, or operational changes impacting capital structure and asset management.
Financial Leverage
Occidental Petroleum Corp., financial leverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends in the company's balance sheet over the analyzed periods. Total assets exhibit a general downward trend from March 31, 2020, through to the end of 2023, followed by a notable increase starting in early 2024. Specifically, total assets declined from approximately $101.6 billion in March 2020 to around $71.8 billion by December 2023. Subsequently, there is a steady rise reaching about $85.0 billion by March 2025, indicating a potential expansion or shift in asset base during this later period.
Stockholders’ equity shows a contrasting pattern compared to total assets. Initially, equity declines substantially from around $31.3 billion in March 2020 to a low near $18.3 billion by March 2021. Afterward, equity progressively strengthens through the subsequent quarters, reaching approximately $30.3 billion by December 2023 and continuing to climb to about $34.7 billion by March 2025. This recovery suggests improved retained earnings or capital injections contributing to the company’s net worth over time.
The financial leverage ratio, defined as the ratio of total assets to stockholders’ equity, illustrates a significant decline between March 2020 and December 2023, followed by relative stability with minor fluctuations thereafter. Initially, the leverage ratio is elevated at 3.25 in March 2020, peaking around 4.38 in mid-2021. This level reflects higher leverage, implying greater use of debt or liabilities relative to equity. Thereafter, leverage steadily decreases to roughly 2.41 by December 2023, indicating a deleveraging trend or an improvement in the equity base relative to assets. From 2024 onward, the leverage ratio remains broadly stable, fluctuating just above 2.4, suggesting a more balanced capital structure in recent periods.
Overall, the data suggests the company underwent a phase of asset contraction and equity reduction during the earlier quarters (2020 to early 2021), followed by a stabilization and improvement phase characterized by increased equity and asset growth starting in late 2023 through early 2025. Financial leverage trends align with these observations, reflecting a decrease in reliance on debt relative to equity, which may signal enhanced financial stability or a strategic shift in capital management.
- Total assets
- Decreased significantly from Q1 2020 through Q4 2023, then increased steadily into 2025.
- Stockholders’ equity
- Declined sharply through Q1 2021, followed by a steady recovery and growth through 2025.
- Financial leverage
- Increased to a peak in mid-2021, then declined consistently to late 2023, stabilizing around 2.4 through 2025.
Interest Coverage
Occidental Petroleum Corp., interest coverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to Occidental | ||||||||||||||||||||||||||||
| Add: Net income attributable to noncontrolling interest | ||||||||||||||||||||||||||||
| Less: Discontinued operations, net of taxes | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest and debt expense, net | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | ||||||||||||||||||||||||||||
| ConocoPhillips | ||||||||||||||||||||||||||||
| Exxon Mobil Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Interest coverage
= (EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024
+ EBITQ2 2024)
÷ (Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024
+ Interest expenseQ2 2024)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data indicates distinct trends in operating profitability and interest expense coverage over the observed periods.
- Earnings Before Interest and Tax (EBIT)
- The EBIT exhibited significant volatility initially, with marked negative values through the early quarters of 2020, reaching its lowest point in June 2020 at -7,874 million US dollars. However, starting from the first quarter of 2021, EBIT transitioned into positive territory and showed a generally upward trend with fluctuations. Peaks are observable in mid-2022, specifically June 2022, at 5,100 million US dollars, followed by a downward tapering trend starting from the last quarter of 2022 into 2023. More recent values indicate stabilization around 1,000 to 2,000 million US dollars, though the first quarter of 2024 records a notable dip to 158 million US dollars before rebounding strongly in subsequent quarters of 2024 and into the first quarter of 2025.
- Interest and Debt Expense, Net
- The net interest and debt expense showed less volatility compared to EBIT, mostly fluctuating between 230 and 449 million US dollars in earlier periods. A significant decline occurred around the first half of 2022, with the lowest value recorded at 114 million US dollars in June 2022, indicating a temporary reduction in interest costs. Following that period, expenses gradually increased again but remained within a narrower range of approximately 230 to 327 million US dollars through to the first quarter of 2025. This suggests relatively stable debt servicing costs despite fluctuations in operational profitability.
- Interest Coverage Ratio
- The interest coverage ratio illustrates considerable improvement over the timeframe. In 2020, the company struggled with deeply negative coverage ratios, reflecting operating losses insufficient to cover interest expenses, with the ratio bottoming out at approximately -10.03. Starting at the end of 2020, the ratio became positive and showed a consistent upward trajectory, rising to over 15 in late 2022 and early 2023, denoting strong capacity to meet interest obligations from operating earnings. Although the ratio gradually declined thereafter, it remained above 4 consistently through 2024 and the first quarter of 2025, which still indicates adequate coverage despite some reduction in profitability.
Overall, the data reveals a recovery from significant operating losses in 2020 to sustained profitability thereafter, with a temporary peak in mid-2022 EBIT followed by some volatility. Interest expenses have remained relatively stable, and improvements in interest coverage ratios signal enhanced financial health in terms of meeting debt obligations. The dip in EBIT in early 2024 warrants attention but does not appear to have materially impacted debt coverage capacity given the subsequent recovery.