Occidental Petroleum is an integrated oil and gas company whose financial profile combines capital‑intensive operations with historically high measured returns and wide volatility in top‑line and earnings.
Key fundamentals to watch include quarterly revenue and net income trends, operating cash flow versus net income, per‑share metrics, and year‑over‑year EPS and revenue‑per‑share changes (Revenue & Net Income; Earnings Quality Analysis). Additionally, monitor operating margin, ROE movements, liquidity/leverage ratios such as the current ratio and debt‑to‑equity, and the evolution of the P/E multiple (Strategic Capital Allocation; Price-to-Earnings (PE) Ratio Trend).
The foundation of business quality and long-term value creation
In the most recent quarters, revenue for OCCIDENTAL PETROLEUM CORP /DE/ fell from $16.07B for the quarter ended 2025-12-31 to $3.57B for the quarter ended 2026-03-31; the prior comparable quarterly revenue available in the dataset is $6.80B for 2025-03-31. The most-recently reported net income in the dataset is $945.0M for the quarter ended 2025-03-31.
Looking across the full history, both revenue and net income are highly variable with multiple large swings. Notable revenue peaks include:
Notable net income inflections include a:
The most recent quarterly revenue was $3.57B (period ending 2026-03-31).
The most recent quarterly net income was $945.0M (period ending 2025-03-31).
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Over the period Apr 2025 to Mar 2026, Occidental Petroleum Corp De converts approximately 100¢ of every revenue dollar into gross profit (gross margin: 99.6%).The waterfall below shows how revenue flows through various expense categories.
Period Information
Report Type: Annual (10-K)
Period: Apr 2025 to Mar 2026
Analyzing long-term margin stability and competitive positioning
OCCIDENTAL PETROLEUM CORP /DE/ shows very high trailing twelve‑month gross margins in the most recent quarters, rising from 96.5% for the period ended 2025-12-31 to 99.6% for 2026-03-31. Over the same two quarters, operating margin declined from 13.7% to 10.4%, indicating a quarter‑over‑quarter reduction in operating profitability despite the elevated gross margin levels. The most recent data points therefore combine near‑100% gross retention with a materially lower operating margin compared with some prior peaks.
Looking further back, margins have been highly variable: operating margins and gross margins reached multi‑decade highs (operating margins near 60–99% in several years) and also recorded a deep trough at 2017-12-31 (gross margin -13.5%, operating margin -42.4%). Net profit margin observations are sparser and volatile, with positive readings in earlier years and a most recent net margin observation of -4.8% at 2019-12-31. The latest observed values are: Gross Margin 99.6% (2026-03-31), Operating Margin 10.4% (2026-03-31), Net Profit Margin -4.8% (2019-12-31).
Understanding Profit Margins
Between Apr 2025 and Mar 2026, Occidental Petroleum Corp De converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
Occidental Petroleum Corp /DE/ shows a clear decline in trailing twelve‑month operating cash flow from $16.81B at the 2022 year end to $11.44B at the 2024 year end, with the most recent data point for operating cash flow at $11.44B. In 2022 the company’s operating cash flow ($16.81B) exceeded reported net income for the same trailing twelve‑month period ($13.30B), indicating cash generation that was higher than accounting earnings at that time.
Net income has been volatile over the longer record: material positive TTM results appear in 2011 ($6.77B), 2013 ($5.90B), 2018 ($4.13B) and 2022 ($13.30B), while TTM net losses are recorded for 2016 (−$574M) and 2019 (−$985M). The most recent Operating Cash Flow (TTM) observed is $11.44B. The most recent Net Income (TTM) observed is $13.30B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
Trailing Twelve Months
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
OCCIDENTAL PETROLEUM CORP /DE/ (OXY) shows a clear upward move in return on equity toward the most recent period. ROE was roughly stable around the high-teens in 2011 (18.0%) and 2018 (19.4%), dropped to -2.9% by the 2019 year end — a notable inflection into negative territory — and then rose sharply to the most recent reported value.
The latest reported ROE of 44.2% (period end 2022-12-31) is materially higher than prior observations in the dataset. The most recent RETURN_ON_EQUITY value was 44.2%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
OCCIDENTAL PETROLEUM CORP /DE/ shows a decline in trailing-twelve-month operating cash flow from $16.81B at year-end 2022 to $11.44B at year-end 2024, indicating lower cash generated from operations in the more recent 12-month window. That reduction is the most notable recent change in the operating series provided.
Financing cash flow has swung materially over the period shown: large inflows in 2019 ($22.19B) were followed by substantial outflows in 2021 (-$8.57B) and 2022 (-$13.71B), then shifted to positive financing inflows of $3.84B at 2024-12-31 and $3.24B at 2025-03-31 (the latest). Investing cash flow observations are sparse in the dataset but are negative historically (most recently -$819.0M at 2020-12-31). The latest trailing-twelve-month values are: Operating Cash Flow TTM $11.44B (period ending 2024-12-31); Investing Cash Flow TTM -$819.0M (period ending 2020-12-31); Financing Cash Flow TTM $3.24B (period ending 2025-03-31).
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Trailing Twelve Months
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
OCCIDENTAL PETROLEUM CORP /DE/’s reported trailing twelve‑month P/E ratio has contracted sharply versus earlier years. Historical points show P/E around 11.1x in 2011, 12.5x in 2013 and 12.0x in 2018, while the most recent quarterly observation (period ending 2022-12-31) registers substantially lower at 3.7x, indicating a material de‑rating of the valuation relative to those earlier readings.
The dataset includes blank/undefined P/E entries for the 2016 and 2019 year‑end periods. The latest observed Price‑to‑Earnings (P/E) ratio for OCCIDENTAL PETROLEUM CORP /DE/ is 3.7x.
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.