Stock Analysis on Net

Occidental Petroleum Corp. (NYSE:OXY)

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Occidental Petroleum Corp., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating Assets
Total assets 85,445 74,008 72,609 75,036 80,064
Less: Cash and cash equivalents 2,132 1,426 984 2,764 2,008
Operating assets 83,313 72,582 71,625 72,272 78,056
Operating Liabilities
Total liabilities 50,965 43,659 42,524 54,709 61,491
Less: Current maturities of long-term debt 1,138 1,202 165 186 440
Less: Long-term debt, net, excluding current maturities 24,978 18,536 19,670 29,431 35,745
Operating liabilities 24,849 23,921 22,689 25,092 25,306
 
Net operating assets1 58,464 48,661 48,936 47,180 52,750
Balance-sheet-based aggregate accruals2 9,803 (275) 1,756 (5,570)
Financial Ratio
Balance-sheet-based accruals ratio3 18.30% -0.56% 3.65% -11.15%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Chevron Corp. -2.10% 5.21% 0.03% -3.43%
ConocoPhillips 29.59% 10.61% -5.86% 44.50%
Exxon Mobil Corp. 26.07% 3.91% -1.19% -4.87%
Balance-Sheet-Based Accruals Ratio, Sector
Oil, Gas & Consumable Fuels 17.00% 4.71% -0.84% -0.16%
Balance-Sheet-Based Accruals Ratio, Industry
Energy 16.21% 4.84% -0.61% -0.16%

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
Net operating assets = Operating assets – Operating liabilities
= 83,31324,849 = 58,464

2 2024 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2024 – Net operating assets2023
= 58,46448,661 = 9,803

3 2024 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 9,803 ÷ [(58,464 + 48,661) ÷ 2] = 18.30%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Occidental Petroleum Corp. deteriorated earnings quality from 2023 to 2024.

Cash-Flow-Statement-Based Accruals Ratio

Occidental Petroleum Corp., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) attributable to Occidental 3,056 4,696 13,304 2,322 (14,831)
Less: Net cash provided by operating activities 11,739 12,308 16,810 10,253 3,842
Less: Net cash used by investing activities (14,590) (6,980) (4,872) (1,174) (778)
Cash-flow-statement-based aggregate accruals 5,907 (632) 1,366 (6,757) (17,895)
Financial Ratio
Cash-flow-statement-based accruals ratio1 11.03% -1.30% 2.84% -13.52%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Chevron Corp. -2.83% 0.58% -1.22% -4.57%
ConocoPhillips 0.37% 5.11% -1.56% -0.78%
Exxon Mobil Corp. -0.55% -0.04% -2.93% -6.69%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Oil, Gas & Consumable Fuels -0.02% 0.66% -1.62% -6.08%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Energy 0.15% 0.69% -1.32% -6.12%

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-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 5,907 ÷ [(58,464 + 48,661) ÷ 2] = 11.03%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Occidental Petroleum Corp. deteriorated earnings quality from 2023 to 2024.