Halliburton Company (HAL)
Payables 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 |
| Payables | US$ in thousands | 3,189,000 | 3,009,000 | 3,295,000 | 3,092,000 | 3,147,000 | 3,238,000 | 3,188,000 | 3,180,000 | 3,121,000 | 3,064,000 | 2,794,000 | 2,561,000 | 2,353,000 | 2,011,000 | 1,891,000 | 1,769,000 | 1,573,000 | 1,548,000 | 1,708,000 | 2,640,000 |
| Payables turnover | 0.12 | 0.13 | 0.08 | 0.09 | 0.08 | 0.08 | 0.08 | 0.21 | 0.22 | 0.23 | 0.25 | 0.10 | 0.10 | 0.33 | 0.42 | 1.94 | 2.86 | 4.32 | 3.84 | 1.59 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $392,000K ÷ $3,189,000K
= 0.12
The payables turnover ratio for Halliburton Company has fluctuated over the years, indicating changes in the efficiency of its payables management. The ratio decreased from 3.84 as of June 30, 2020, to 0.10 by December 31, 2021, suggesting a significant decrease in the rate at which the company paid its suppliers. This decline in payables turnover could be due to various reasons, such as changes in payment terms with suppliers, delays in payments, or fluctuations in business operations impacting accounts payable.
Subsequently, from March 31, 2022, to September 30, 2024, the payables turnover ratio remained relatively low, hovering between 0.08 and 0.13. This prolonged period of low payables turnover may indicate challenges in managing accounts payable efficiently or potential liquidity constraints within the company.
Overall, a low payables turnover ratio could imply that Halliburton Company takes longer to pay its suppliers, potentially straining vendor relationships or indicating underlying financial difficulties. It is essential for the company to analyze the reasons behind the decreasing trend in payables turnover and take appropriate measures to improve efficiency in managing its payables for better financial health and supplier relationships.
Peer comparison
Dec 31, 2024