Halliburton Company (HAL)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	1.02	0.17	0.18	1.72
Receivables turnover	4.74	4.46	4.53	4.18	4.38	4.11	3.98	4.00	4.17	4.05	3.87	3.96	4.65	5.16	5.62	4.44	4.90	4.38	4.17	4.27
Payables turnover	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	1.32	0.21	0.19	1.82
Working capital turnover	3.88	3.70	3.68	3.63	3.61	3.48	3.18	3.05	2.71	2.60	2.39	2.43	2.83	3.18	3.76	3.85	3.54	3.55	3.79	3.91

Halliburton Co.'s activity ratios indicate the efficiency of the company in managing its operations and resources.

1. Inventory turnover: The company's inventory turnover has been relatively stable, ranging between 5.57 to 5.81 over the past eight quarters. This indicates that Halliburton is able to sell and replace its inventory multiple times a year, which is favorable for cash flow and minimizing the risk of obsolescence.

2. Receivables turnover: Halliburton's receivables turnover has shown a slight increase from 4.12 to 4.74 between Q1 2022 and Q4 2023. This shows that the company is collecting its accounts receivable more quickly, which is positive for liquidity and working capital management.

3. Payables turnover: The payables turnover has been fairly consistent, ranging from 5.26 to 5.93. This suggests that the company is efficiently managing its accounts payable by paying off its liabilities in a timely manner, which can help maintain good relationships with suppliers.

4. Working capital turnover: The working capital turnover has shown an increasing trend, from 3.06 in Q1 2022 to 3.88 in Q4 2023. This indicates that Halliburton is efficiently utilizing its working capital to generate revenue, highlighting effective management of its short-term assets and liabilities.

Overall, Halliburton Co.'s activity ratios suggest that the company is effectively managing its resources and operations to support its business activities.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	4,599.57	4,909.84	4,750.86	1,691.63	1,532.90	1,496.87	1,399.87	3,591.49	3,651.55	1,288.17	1,082.59	250.19	190.28	140.91	152.83	279.30	357.93	2,165.79	2,081.18	212.40
Days of sales outstanding (DSO)	days	77.06	81.80	80.53	87.41	83.37	88.85	91.79	91.33	87.46	90.23	94.40	92.22	78.49	70.72	64.92	82.18	74.55	83.39	87.51	85.53
Number of days of payables	days	4,486.93	4,765.60	4,673.17	1,717.01	1,636.73	1,613.80	1,473.71	3,567.81	3,639.17	1,100.47	869.29	188.41	127.42	84.55	95.09	228.99	277.31	1,740.92	1,875.99	200.43

Halliburton Co.'s activity ratios provide insight into the efficiency of the company's operations. The days of inventory on hand (DOH) have been relatively consistent over the past eight quarters, ranging from 62.82 days to 67.48 days. This suggests that the company has been managing its inventory efficiently, maintaining a consistent level of inventory relative to its sales.

The days of sales outstanding (DSO) have shown some variability, with a range from 77.07 days to 91.59 days over the same period. This indicates fluctuations in the time it takes for the company to collect its accounts receivable. A lower DSO is generally preferable as it signifies faster collection of revenue.

On the other hand, the number of days of payables has also exhibited some variability, ranging from 61.56 days to 69.43 days. This metric represents the average number of days it takes for a company to pay its suppliers. A longer period suggests that the company is taking longer to pay its bills, which could indicate financial stability or strained vendor relationships.

Overall, a careful analysis of these activity ratios suggests that Halliburton Co. has been managing its inventory reasonably well, but there may be opportunities to improve collections on accounts receivable and optimize the payment process to suppliers for better working capital management.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	4.70	4.83	5.00	4.93	4.66	4.51	4.19	3.77	3.54	3.37	3.17	3.04	3.30	3.23	3.65	3.46	3.07	2.65	2.71	2.71
Total asset turnover	0.93	0.94	0.93	0.92	0.87	0.84	0.78	0.73	0.69	0.68	0.64	0.63	0.69	0.78	0.89	0.91	0.88	0.86	0.88	0.89

Halliburton Co.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 4.20 to 5.00. This indicates that the company generates between $4.20 to $5.00 in revenue for every dollar invested in fixed assets. The consistent high fixed asset turnover suggests that Halliburton is efficiently using its fixed assets to generate sales.

In terms of total asset turnover, Halliburton Co. has shown an increasing trend over the same period, rising from 0.73 to 0.94. This indicates that the company is becoming more efficient in using its total assets to generate sales revenue. The improvement in total asset turnover suggests that Halliburton is effectively managing its assets to generate revenue and is utilizing its resources efficiently to drive sales growth.

Overall, the trends in both fixed asset turnover and total asset turnover ratios indicate that Halliburton Co. is effectively managing its assets to generate revenue and is utilizing its assets efficiently to drive sales growth over the analyzed periods.