Halliburton Company (HAL)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	23,020,000	22,864,000	22,417,000	21,693,000	20,258,000	18,954,000	17,457,000	16,090,000	15,299,000	14,259,000	13,374,000	12,863,000	14,281,000	16,232,000	18,808,000	21,542,000	22,410,000	23,154,000	23,775,000	23,992,000
Property, plant and equipment	US$ in thousands	4,900,000	4,733,000	4,483,000	4,399,000	4,348,000	4,203,000	4,165,000	4,270,000	4,326,000	4,235,000	4,214,000	4,231,000	4,325,000	5,033,000	5,156,000	6,223,000	7,310,000	8,721,000	8,778,000	8,853,000
Fixed asset turnover		4.70	4.83	5.00	4.93	4.66	4.51	4.19	3.77	3.54	3.37	3.17	3.04	3.30	3.23	3.65	3.46	3.07	2.65	2.71	2.71

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $23,020,000K ÷ $4,900,000K
= 4.70

Fixed asset turnover is a measure of how effectively a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, which is considered favorable.

In the case of Halliburton Co., the fixed asset turnover ratio has been relatively stable and consistently above 4. This implies that the company has been efficiently using its fixed assets to generate revenue over the past eight quarters. The ratio has shown a slight increasing trend, reaching its peak in Q2 2023 at 5.00.

Overall, Halliburton Co. has been able to effectively leverage its fixed assets to drive revenue generation, which is a positive sign of operational efficiency and asset utilization. However, it is important to monitor this ratio over time to ensure that the company's capital-intensive assets continue to be used efficiently to support revenue growth.