Halliburton Company (HAL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		0.13	0.12	0.08	0.08	0.08	0.07	0.08	0.22	0.24	0.24	0.26	0.10	0.10	0.28	0.34	1.46	1.92	2.59	2.39	1.31
DOH	days	2,830.61	3,035.96	4,420.41	4,521.56	4,599.57	4,909.84	4,750.86	1,691.63	1,532.90	1,496.87	1,399.87	3,591.49	3,651.55	1,288.17	1,082.59	250.19	190.28	140.91	152.83	279.30

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.13
= 2,830.61

The days of inventory on hand (DOH) for Halliburton Company have shown significant fluctuations over the past few years as per the provided data. The trend indicates a prolonged period of inventory buildup followed by sharp declines and subsequent spikes.

From March 31, 2020, to September 30, 2021, the company experienced a decreasing trend in DOH, suggesting efficient inventory management and potentially aligning production levels with demand. However, starting from December 31, 2021, there was a sudden and substantial increase in DOH, reaching its peak at 4,750.86 days on June 30, 2023.

Such a drastic rise in DOH could be indicative of potential issues, such as excess inventory, obsolete stock, supply chain disruptions, or production inefficiencies. It may also signal a mismatch between production planning and actual demand in the market.

Although there was a slight downtrend in DOH towards the end of 2024, the levels remained significantly elevated compared to the earlier period. This situation calls for a closer examination of Halliburton's inventory management strategies and operational processes to address the prolonged high DOH figures and optimize working capital utilization.