Halliburton Company (HAL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,947,000 | 23,020,000 | 20,258,000 | 15,299,000 | 14,281,000 |
| Property, plant and equipment | US$ in thousands | 5,113,000 | 4,900,000 | 4,348,000 | 4,326,000 | 4,325,000 |
| Fixed asset turnover | 4.49 | 4.70 | 4.66 | 3.54 | 3.30 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $22,947,000K ÷ $5,113,000K
= 4.49
Halliburton Company's fixed asset turnover has shown a positive trend over the past five years. The ratio increased from 3.30 in December 31, 2020, to 4.49 in December 31, 2024. This indicates that the company generated $4.49 in revenue for every dollar of fixed assets invested at the end of 2024.
The steady increase in fixed asset turnover suggests that Halliburton has been effectively utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio is generally favorable as it indicates efficient asset utilization.
Overall, the upward trend in Halliburton's fixed asset turnover reflects the company's ability to generate revenue efficiently from its investment in fixed assets, which is a positive indicator of operational performance and potentially efficient capital allocation.
Peer comparison
Dec 31, 2024