Halliburton Company (HAL)
Payables 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 |
| Payables | US$ in thousands | 3,147,000 | 3,121,000 | 2,353,000 | 1,573,000 | 2,432,000 |
| Payables turnover | 0.08 | 0.22 | 0.10 | 2.86 | 1.32 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $256,000K ÷ $3,147,000K
= 0.08
The payables turnover ratio for Halliburton Co. has shown variations over the past five years. In 2023, the payables turnover ratio was 5.93, indicating that the company paid off its accounts payable approximately 5.93 times during the year. This was an increase from the previous year's ratio of 5.44 in 2022 but slightly lower compared to 2021's ratio of 5.64.
The significant decrease in the payables turnover ratio in 2020 to 8.20 followed by a slight decline in 2019 to 8.27 may indicate that the company was taking longer to pay off its accounts payable during those years. This could be due to various factors such as changes in payment terms with suppliers, cash flow constraints, or changes in the company's purchasing patterns.
Overall, a higher payables turnover ratio generally indicates that the company is managing its accounts payable efficiently by paying off its suppliers more frequently. On the other hand, a lower ratio may suggest that the company is taking longer to settle its payables, which could have implications for its working capital management and relationships with suppliers. It is essential for Halliburton Co. to monitor and analyze its payables turnover ratio consistently to ensure effective management of its accounts payable and optimize its cash flow position.
Peer comparison
Dec 31, 2023