Halliburton Company (HAL)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	392,000	384,000	271,000	263,000	256,000	248,000	249,000	676,000	696,000	693,000	692,000	262,000	236,000	667,000	794,000	3,427,000	4,506,000	6,683,000	6,556,000	4,208,000
Inventory	US$ in thousands	3,040,000	3,194,000	3,282,000	3,258,000	3,226,000	3,336,000	3,241,000	3,133,000	2,923,000	2,842,000	2,654,000	2,578,000	2,361,000	2,354,000	2,355,000	2,349,000	2,349,000	2,580,000	2,745,000	3,220,000
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $392,000K ÷ $3,040,000K
= 0.13

Halliburton Company's inventory turnover ratio, which measures how efficiently the company manages its inventory, has shown a downward trend over the past few years. Starting at 1.31 on March 31, 2020, the ratio improved to 2.59 by September 30, 2020. However, it began to decline thereafter, reaching a low of 0.08 on June 30, 2023, before slightly recovering to 0.13 by December 31, 2024.

The decreasing trend in inventory turnover could indicate inefficiencies in managing inventory levels, potentially leading to excess or obsolete inventory. This can tie up working capital and result in increased storage costs. It may also point to challenges in accurately forecasting demand or disruptions in the supply chain.

Overall, a declining inventory turnover ratio for Halliburton Company suggests the need to enhance inventory management practices to improve operational efficiency and optimize working capital utilization.