Halliburton Company (HAL)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	392,000	256,000	696,000	236,000	4,506,000
Payables	US$ in thousands	3,189,000	3,147,000	3,121,000	2,353,000	1,573,000
Payables turnover		0.12	0.08	0.22	0.10	2.86

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $392,000K ÷ $3,189,000K
= 0.12

Based on the data provided, Halliburton Company's payables turnover ratio has shown fluctuation over the past five years.

In December 31, 2020, the payables turnover ratio was at 2.86, indicating that the company's payables turnover was relatively high, meaning the company was effectively managing its accounts payables during that period.

However, there was a significant decline in the payables turnover ratio to 0.10 by December 31, 2021. This sharp decrease implies that the company took longer to pay its suppliers compared to the previous year, which may lead to liquidity issues or strained relationships with suppliers.

By December 31, 2022, the payables turnover ratio slightly improved to 0.22, but it still remained relatively low compared to historical levels. This could suggest ongoing challenges in managing payables efficiently.

Subsequently, there was a drop in the payables turnover ratio to 0.08 by December 31, 2023, indicating a further deterioration in the company's ability to manage its accounts payables effectively.

Finally, by December 31, 2024, the payables turnover ratio increased slightly to 0.12. While this improvement is positive, the ratio still remains below the initial levels seen in 2020.

In conclusion, the fluctuating trend in Halliburton Company's payables turnover ratio suggests inconsistencies in the company's management of accounts payables over the past five years. Further analysis is recommended to understand the underlying reasons for these fluctuations and to implement strategies to improve the efficiency of payables management.