Halliburton Company (HAL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,020,000 | 20,258,000 | 15,299,000 | 14,281,000 | 22,413,000 |
| Receivables | US$ in thousands | 4,860,000 | 4,627,000 | 3,666,000 | 3,071,000 | 4,577,000 |
| Receivables turnover | 4.74 | 4.38 | 4.17 | 4.65 | 4.90 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $23,020,000K ÷ $4,860,000K
= 4.74
The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables from its customers during a specific period. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Analyzing Halliburton Co.'s receivables turnover over the past five years, we observe fluctuations in the ratio. In 2023, the receivables turnover ratio was 4.74, showing an improvement compared to the previous year. This suggests that Halliburton Co. was able to collect its accounts receivable more efficiently in 2023.
However, the trend was not consistent over the five-year period. In 2022, the ratio decreased to 4.39 from 4.70 in 2021, indicating a temporary slowdown in receivables collection efficiency. The ratio in 2021 was also lower than 2020 when it was 4.70, showing a slight decline in collection efficiency.
Comparing the most recent ratio to the ratio from 2019 provides context for the overall efficiency of receivables collection. In 2019, the ratio was 4.90, which was higher than all subsequent years until 2023. This indicates a potential shift in the company's collection practices or customer credit policies.
Overall, while Halliburton Co. has demonstrated variations in its receivables turnover ratio over the past five years, the latest ratio in 2023 suggests an improvement in the efficiency of collecting accounts receivable compared to the previous year. Investors and analysts may further investigate the reasons behind these fluctuations to assess the company's financial health and management of accounts receivable.
Peer comparison
Dec 31, 2023