Occidental Petroleum Stock Beneish M Score

OXY Stock  USD 63.20  0.55  0.88%   
This module uses fundamental data of Occidental Petroleum to approximate the value of its Beneish M Score. Occidental Petroleum M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Occidental Petroleum Piotroski F Score and Occidental Petroleum Altman Z Score analysis.
For more information on how to buy Occidental Stock please use our How to Invest in Occidental Petroleum guide.
  
At this time, Occidental Petroleum's Short and Long Term Debt Total is fairly stable compared to the past year. Net Debt is likely to rise to about 20.5 B in 2024, whereas Short Term Debt is likely to drop slightly above 921.2 M in 2024. At this time, Occidental Petroleum's Company Equity Multiplier is fairly stable compared to the past year. Long Term Debt To Capitalization is likely to rise to 0.44 in 2024, whereas Short Term Coverage Ratios is likely to drop 7.10 in 2024.
At this time, it appears that Occidental Petroleum is an unlikely manipulator. The earnings manipulation may begin if Occidental Petroleum's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Occidental Petroleum executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Occidental Petroleum's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-4.19
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.53

Focus
Asset Quality

0.4

Focus
Expense Coverage

2.13

Focus
Gross Margin Strengs

0.84

Focus
Accruals Factor

2.13

Focus
Depreciation Resistance

0.59

Focus
Net Sales Growth

0.63

Focus
Financial Leverage Condition

1.68

Focus

Occidental Petroleum Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Occidental Petroleum's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables3.1 B3.2 B
Sufficiently Down
Pretty Stable
Total Revenue17.8 B28.3 B
Way Down
Slightly volatile
Total Assets40 B74 B
Way Down
Slightly volatile
Total Current Assets6.8 B8.4 B
Significantly Down
Very volatile
Non Current Assets Total33.1 B65.6 B
Way Down
Slightly volatile
Property Plant Equipment39.5 B68.2 B
Way Down
Slightly volatile
Depreciation And Amortization7.2 B6.9 B
Sufficiently Up
Slightly volatile
Selling General Administrative1.4 B1.1 B
Significantly Up
Pretty Stable
Total Current Liabilities5.6 B9.1 B
Way Down
Slightly volatile
Non Current Liabilities Total36.2 B34.5 B
Sufficiently Up
Slightly volatile
Net Debt20.5 B19.5 B
Sufficiently Up
Slightly volatile
Short Term Debt921.2 M1.6 B
Way Down
Pretty Stable
Long Term Debt11.1 B17.9 B
Way Down
Slightly volatile
Total Cash From Operating Activities12.9 B12.3 B
Sufficiently Up
Slightly volatile
Long Term Investments3.7 B3.2 B
Fairly Up
Slightly volatile
Gross Profit Margin0.30.3578
Fairly Down
Pretty Stable

Occidental Petroleum Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Occidental Petroleum's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Occidental Petroleum in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Occidental Petroleum's degree of accounting gimmicks and manipulations.

About Occidental Petroleum Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

13.72 Billion

At this time, Occidental Petroleum's Other Operating Expenses is fairly stable compared to the past year.

Occidental Petroleum Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Occidental Petroleum. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables6.4B2.1B4.2B4.3B3.2B3.1B
Total Revenue20.4B17.8B26.0B36.6B28.3B17.8B
Total Assets109.3B80.1B75.0B72.6B74.0B40.0B
Total Current Assets18.7B8.8B10.2B8.9B8.4B6.8B
Net Debt37.0B35.3B27.6B19.8B19.5B20.5B
Short Term Debt620M913M372M438M1.6B921.2M
Long Term Debt38.5B35.7B28.9B19.1B17.9B11.1B
Operating Income3.4B(770M)5.5B14.6B4.7B3.5B
Investments(29.0B)(778M)406M(4.9B)(7.0B)(7.3B)
Gross Profit Margin0.230.410.30.06990.480.36

Occidental Petroleum ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Occidental Petroleum's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Occidental Petroleum's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Occidental Petroleum Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Occidental Petroleum's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Occidental Petroleum using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Occidental Petroleum based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas. Occidental Petroleum operates under Oil Gas EP classification in the United States and is traded on New York Stock Exchange. It employs 11678 people.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Occidental Petroleum offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Occidental Petroleum's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Occidental Petroleum Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Occidental Petroleum Stock:
Check out Occidental Petroleum Piotroski F Score and Occidental Petroleum Altman Z Score analysis.
For more information on how to buy Occidental Stock please use our How to Invest in Occidental Petroleum guide.
You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Complementary Tools for Occidental Stock analysis

When running Occidental Petroleum's price analysis, check to measure Occidental Petroleum's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Occidental Petroleum is operating at the current time. Most of Occidental Petroleum's value examination focuses on studying past and present price action to predict the probability of Occidental Petroleum's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Occidental Petroleum's price. Additionally, you may evaluate how the addition of Occidental Petroleum to your portfolios can decrease your overall portfolio volatility.
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Is Occidental Petroleum's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Occidental Petroleum. If investors know Occidental will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Occidental Petroleum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.38)
Dividend Share
0.72
Earnings Share
3.9
Revenue Per Share
31.778
Quarterly Revenue Growth
(0.13)
The market value of Occidental Petroleum is measured differently than its book value, which is the value of Occidental that is recorded on the company's balance sheet. Investors also form their own opinion of Occidental Petroleum's value that differs from its market value or its book value, called intrinsic value, which is Occidental Petroleum's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Occidental Petroleum's market value can be influenced by many factors that don't directly affect Occidental Petroleum's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Occidental Petroleum's value and its price as these two are different measures arrived at by different means. Investors typically determine if Occidental Petroleum is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Occidental Petroleum's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.