Occidental Beneish M Score

OXY
 Stock
  

USD 69.29  1.06  1.55%   

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. Please check Occidental Petroleum Piotroski F Score and Occidental Petroleum Altman Z Score analysis.
  
Occidental Petroleum Total Debt is fairly stable at the moment as compared to the past year. Occidental Petroleum reported Total Debt of 46.04 Billion in 2021. Debt Non Current is likely to rise to about 48.9 B in 2022, whereas Debt Current is likely to drop slightly above 546.5 M in 2022. Occidental Petroleum Revenue to Assets are fairly stable at the moment as compared to the past year. Occidental Petroleum reported Revenue to Assets of 0.35 in 2021. Quick Ratio is likely to rise to 0.96 in 2022, whereas Cash and Equivalents Turnover is likely to drop 10.14 in 2022.
At this time, it appears that Occidental Petroleum Corp 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.
-2.74
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.89Focus
Asset Quality1.72Focus
Expense Coverage1.22Focus
Gross Margin Strengs1.1Focus
Accruals Factor1.22Focus
Depreciation Resistance1.23Focus
Net Sales Growth0.96Focus
Financial Leverage Condition1.24Focus

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
Selling General and Administrative Expense924.8 M793.8 M
Fairly Up
Decreasing
Slightly volatile
Revenues25.2 B26.3 B
Sufficiently Down
Decreasing
Very volatile
Trade and Non Trade Receivables8.7 B10.2 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net103.8 B96.2 B
Significantly Up
Increasing
Slightly volatile
Operating Income4.9 B4.6 B
Significantly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations10.2 B10.4 B
Fairly Down
Decreasing
Slightly volatile
Liabilities Non Current74.8 B69.3 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities7.9 B8.3 B
Notably Down
Increasing
Stable
Total Liabilities59 B54.7 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current7.9 B7.3 B
Significantly Up
Increasing
Slightly volatile
Investments7.9 B7.3 B
Significantly Up
Increasing
Slightly volatile
Gross Margin69.3663.2933
Significantly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion5.9 B6.9 B
Fairly Down
Increasing
Slightly volatile
Debt Non Current48.9 B45.3 B
Significantly Up
Increasing
Slightly volatile
Debt Current546.5 M567 M
Sufficiently Down
Decreasing
Stable
Total Debt49.7 B46 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current114.8 B106.4 B
Significantly Up
Increasing
Slightly volatile
Current Assets11.8 B10.2 B
Fairly Up
Decreasing
Very volatile
Total Assets65.4 B75 B
Fairly Down
Increasing
Slightly volatile

Occidental Petroleum Corp 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.

Operating Expenses

5.66 Billion

Occidental Petroleum Operating Expenses is fairly stable at the moment as compared to the past year. Occidental Petroleum reported Operating Expenses of 6.4 Billion in 2021

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.
201720182019202020212022 (projected)
Revenues13.27 B18.93 B21.23 B16.26 B26.31 B25.15 B
Total Assets42.03 B43.85 B109.33 B80.06 B75.04 B65.43 B
Current Assets8.27 B9.93 B18.68 B8.82 B10.21 B11.79 B
Assets Non Current34.68 B33.76 B33.92 B92.56 B106.44 B114.84 B
Total Liabilities21.45 B22.52 B75.1 B61.49 B54.71 B59.03 B
Current Liabilities7.4 B7.41 B14.95 B8.22 B8.32 B7.86 B
Total Debt9.82 B9.83 B10.32 B40.04 B46.04 B49.68 B
Debt Non Current9.82 B9.33 B10.2 B39.41 B45.32 B48.9 B
Operating Income1.32 B5.67 B646 M(14.23 B)4.57 B4.93 B
Investments1.4 B1.51 B1.68 B6.39 B7.35 B7.93 B
Gross Margin57.8665.3163.6647.9263.2969.36

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 Corp'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 Corp 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.

Occidental Petroleum Investors Sentiment

The influence of Occidental Petroleum's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Occidental. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Occidental Petroleum's public news can be used to forecast risks associated with investment in Occidental. The trend in average sentiment can be used to explain how an investor holding Occidental can time the market purely based on public headlines and social activities around Occidental Petroleum Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Occidental Petroleum's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Occidental Petroleum's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Occidental Petroleum's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Occidental Petroleum.

Occidental Petroleum Implied Volatility

    
  57.63  
Occidental Petroleum's implied volatility exposes the market's sentiment of Occidental Petroleum Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Occidental Petroleum's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Occidental Petroleum stock will not fluctuate a lot when Occidental Petroleum's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Occidental Petroleum in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Occidental Petroleum's short interest history, or implied volatility extrapolated from Occidental Petroleum options trading.

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Please check Occidental Petroleum Piotroski F Score and Occidental Petroleum Altman Z Score analysis. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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When running Occidental Petroleum Corp 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 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.
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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 YOY
2.89
Market Capitalization
62 B
Quarterly Revenue Growth YOY
0.38
Return On Assets
0.11
Return On Equity
0.54
The market value of Occidental Petroleum Corp 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 Occidental Petroleum value 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.