Halliburton Company (HAL)
Working capital 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 |
| Total current assets | US$ in thousands | 11,543,000 | 10,952,000 | 9,943,000 | 9,475,000 | 11,212,000 |
| Total current liabilities | US$ in thousands | 5,608,000 | 5,345,000 | 4,306,000 | 4,421,000 | 4,878,000 |
| Working capital turnover | 3.88 | 3.61 | 2.71 | 2.83 | 3.54 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,020,000K ÷ ($11,543,000K – $5,608,000K)
= 3.88
The working capital turnover ratio for Halliburton Co. has shown some fluctuation over the past five years. In 2023, the ratio stands at 3.88, which indicates that the company generated $3.88 in revenue for every dollar of working capital invested. This represents an improvement from the prior year, where the ratio was 3.62.
The increasing trend in the working capital turnover ratio suggests that Halliburton Co. has become more efficient in utilizing its working capital to generate sales. It indicates that the company is able to efficiently manage its current assets and liabilities to support its operations and revenue generation.
Compared to 2021 and 2020, where the ratios were 2.71 and 2.86 respectively, the company has significantly improved its working capital efficiency. However, it is still lower than the ratio recorded in 2019, which was 3.54.
Overall, a higher working capital turnover ratio is generally seen as positive, as it indicates that the company is able to generate more revenue relative to its working capital investment. Halliburton Co.'s increasing ratio over the past two years reflects improved efficiency in managing its working capital.
Peer comparison
Dec 31, 2023