Halliburton Company (HAL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 256,000 | 696,000 | 236,000 | 4,506,000 | 3,210,000 |
| Inventory | US$ in thousands | 3,226,000 | 2,923,000 | 2,361,000 | 2,349,000 | 3,139,000 |
| Inventory turnover | 0.08 | 0.24 | 0.10 | 1.92 | 1.02 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $256,000K ÷ $3,226,000K
= 0.08
Halliburton Co.'s inventory turnover has shown a relatively stable trend over the past five years, ranging between 5.49 and 6.41. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales. The slight fluctuations in the inventory turnover ratios suggest that Halliburton Co. has been efficient in managing its inventory turnover despite potential changes in market demand or supply chain disruptions. The consistency in inventory turnover ratios demonstrates the company's ability to strike a balance between stocking enough inventory to meet customer demand while avoiding excess inventory holding costs. Overall, the sustained inventory turnover ratios reflect Halliburton Co.'s strong inventory management practices.
Peer comparison
Dec 31, 2023