Halliburton Company (HAL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 22,947,000 | 23,020,000 | 20,258,000 | 15,299,000 | 14,281,000 |
| Total current assets | US$ in thousands | 12,382,000 | 11,543,000 | 10,952,000 | 9,943,000 | 9,475,000 |
| Total current liabilities | US$ in thousands | 6,050,000 | 5,608,000 | 5,345,000 | 4,306,000 | 4,421,000 |
| Working capital turnover | 3.62 | 3.88 | 3.61 | 2.71 | 2.83 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $22,947,000K ÷ ($12,382,000K – $6,050,000K)
= 3.62
Halliburton Company's working capital turnover ratio measures the efficiency of the company in managing its working capital to generate sales. The trend of the working capital turnover ratio for Halliburton over the past five years shows a fluctuating pattern.
In December 2020, the working capital turnover ratio was 2.83, indicating that the company generated $2.83 in revenue for every dollar of working capital invested. In the following year, the ratio decreased to 2.71, signaling a slight decline in the efficiency of working capital management.
However, in December 2022, there was a significant improvement in the working capital turnover ratio, reaching 3.61. This suggests that Halliburton effectively utilized its working capital to generate sales. The ratio further increased to 3.88 in December 2023, reflecting continued improvement in efficiency.
In December 2024, the working capital turnover ratio slightly dropped to 3.62, but overall, the trend indicates that Halliburton has been successful in optimizing its working capital to drive sales and operations efficiently. This could be attributed to effective inventory management, accounts receivable collection, and accounts payable management strategies implemented by the company.
Peer comparison
Dec 31, 2024