As the development of most domestic and international oilfields progresses, many fields have entered a mature phase characterized by high water cut and high recovery, with water cut levels often exceeding 90%. Carbon/oxygen ratio logging has proven to be an indispensable tool for distinguishing oil layers from water layers in complex environments, especially where salinity is low, unknown, or highly variable. This logging method has become one of the most effective techniques for determining residual oil saturation in cased wells, providing critical insights into the oil–water interface. In this study, we evaluate two key interpretation models for carbon/oxygen ratio logging: the fan chart method and the ratio chart method. We optimize the interpretation parameters in the ratio chart model using an improved genetic algorithm, which significantly enhances interpretation precision. The optimized parameters enable a more seamless integration of logging results with reservoir and conventional logging data, reducing the influence of lithological variations and physical property differences on the measurements. This research establishes a robust theoretical foundation for enhancing the interpretation accuracy of carbon/oxygen ratio logging, which is crucial for effectively identifying water-flooded layers. These advancements provide vital technical support for monitoring oil–water dynamics, optimizing reservoir management, and improving production efficiency in oilfield development.