OXY Debt-to-Equity Ratio Analysis

Occidental Petroleum’s current debt-to-equity ratio of 0.38x means the company uses 38 cents of debt for every dollar of shareholders’ equity, indicating relatively low financial leverage.

Compared to sector peers, this ratio sits well below the sector median of 0.73x, placing the company in the 28th percentile—meaning 72% of peers have a higher debt-to-equity ratio. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter decline of 5.0% (year-over-year change is not available). A low and still-declining debt-to-equity ratio implies reduced dependence on borrowing, which lowers financial risk and may signal conservative capital management. However, this metric alone does not override other valuation or growth considerations. The overall NEUTRAL verdict is supported by the ratio’s low level, as it reduces bankruptcy risk, but the neutral stance acknowledges that other factors may offset this positive signal.

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