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Stock impact report

These 4 Measures Indicate That Occidental Petroleum (NYSE:OXY) Is Using Debt Extensively [Yahoo! Finance]

Occidental Petroleum Corporation (OXY) 
Last occidental petroleum corporation earnings: 2/27 04:13 pm Check Earnings Report
US:NYSE Investor Relations: oxy.com/investors/pages/default.aspx
Company Research Source: Yahoo! Finance
When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. As with many other companies Occidental Petroleum Corporation NYSE:OXY ) makes use of debt. But the real question is whether this debt is making the company risky. Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt t Show less Read more
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