Halliburton Company (HAL)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	4.48	4.32	4.35	4.54	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
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
Working capital turnover	3.62	3.51	3.68	3.83	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

Halliburton Company's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities.

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period. Halliburton's inventory turnover has fluctuated over the years, with a general declining trend from 2021 onwards. The decreasing trend may indicate potential inventory management issues or changes in demand for the company's products.

2. Receivables Turnover: This ratio reflects how efficiently a company is collecting payments from its customers. Halliburton's receivables turnover has remained relatively stable over the years, indicating a consistent collection process. The slight increase in the turnover ratio from 2021 to 2024 suggests the company is managing its accounts receivable effectively.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Halliburton's payables turnover has shown a decreasing trend over time, indicating a slowdown in the payment process to suppliers. This could impact relationships with suppliers and potentially lead to higher financing costs if payment terms are not met promptly.

4. Working Capital Turnover: This ratio assesses how efficiently a company utilizes its working capital to generate sales revenue. Halliburton's working capital turnover has demonstrated a consistent performance, staying relatively stable over the years. A stable working capital turnover implies the company is effectively using its working capital to support its operations and generate sales revenue.

Overall, while Halliburton has shown some fluctuations in its activity ratios, the company has generally maintained efficient management of its inventory, receivables, payables, and working capital to support its operations. Continued monitoring of these ratios can help identify any potential operational inefficiencies or improvements in the company's performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	2,830.61	3,035.96	4,420.41	4,521.56	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
Days of sales outstanding (DSO)	days	81.39	84.45	83.87	80.47	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
Number of days of payables	days	2,969.35	2,860.12	4,437.92	4,291.18	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

Based on the provided data, we can analyze Halliburton Company's activity ratios over multiple quarters.

Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand for Halliburton indicates the number of days it takes for the company to sell its inventory.
- The DOH ratio fluctuated significantly over the quarters, with a noticeable increase from June 30, 2021, to December 31, 2022.
- A sharp decrease is observed from March 31, 2023, to September 30, 2024, indicating better inventory management during this period.
- However, an increase is noted again by December 31, 2024, suggesting potential challenges in managing inventory efficiently.

Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding ratio reflects how long it takes Halliburton to collect payments from customers after making a sale.
- The DSO remained relatively stable throughout most quarters, with minor fluctuations observed.
- A significant decrease in DSO is noted from June 30, 2023, to December 31, 2023, indicating faster collection of receivables during that period.
- The ratio slightly fluctuated in the following quarters but generally remained within a reasonable range.

Number of Days of Payables:
- This metric highlights the number of days Halliburton takes to pay its suppliers and vendors.
- The Number of Days of Payables ratio also exhibited significant fluctuations across the quarters.
- A notable increase in payables days is seen from June 30, 2021, to December 31, 2022, suggesting extended payment terms with suppliers.
- The ratio then fluctuated over the subsequent quarters, showing variations in the company's payment practices.

In summary, Halliburton's activity ratios reflected fluctuations in inventory management efficiency, receivables collection, and payment practices over the analyzed periods. Continuous monitoring and optimization of these ratios are essential for maintaining a healthy working capital cycle and operational effectiveness.

Long-term

	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
Fixed asset turnover	4.49	4.67	4.57	4.65	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
Total asset turnover	0.90	0.91	0.92	0.94	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

The Fixed Asset Turnover ratio for Halliburton Company has shown an increasing trend over the past few years, indicating that the company is generating more revenue from its fixed assets. This suggests that Halliburton is effectively utilizing its long-term assets to generate sales.

On the other hand, the Total Asset Turnover ratio has been fluctuating but generally increasing over the same period. This indicates that the company is generating more revenue relative to its total assets.

Overall, the increasing trends in both Fixed Asset Turnover and Total Asset Turnover ratios suggest that Halliburton is efficiently managing its long-term assets to generate sales and improve its overall asset utilization.