Halliburton Company (HAL)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	22,947,000	23,075,000	23,182,000	23,147,000	23,020,000	22,864,000	22,417,000	21,693,000	20,258,000	18,954,000	17,457,000	16,090,000	15,299,000	14,259,000	13,374,000	12,863,000	14,281,000	16,232,000	18,808,000	21,542,000
Total current assets	US$ in thousands	12,382,000	12,043,000	11,878,000	11,423,000	11,543,000	11,600,000	11,443,000	11,245,000	10,952,000	10,411,000	10,262,000	9,717,000	9,943,000	9,431,000	9,927,000	9,520,000	9,475,000	9,023,000	9,099,000	10,655,000
Total current liabilities	US$ in thousands	6,050,000	5,460,000	5,576,000	5,379,000	5,608,000	5,419,000	5,346,000	5,266,000	5,345,000	4,968,000	4,766,000	4,444,000	4,306,000	3,946,000	4,334,000	4,225,000	4,421,000	3,923,000	4,094,000	5,053,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $22,947,000K ÷ ($12,382,000K – $6,050,000K)
= 3.62

The working capital turnover of Halliburton Company has shown a fluctuating trend over the analyzed periods. It has decreased from 3.85 on March 31, 2020, to 2.39 on June 30, 2021, indicating a potential inefficiency in utilizing its working capital during this period. However, there was a slight improvement, reaching 3.68 on June 30, 2024.

The company's working capital turnover ratio measures how effectively it is generating revenue from its working capital. A higher ratio typically suggests efficient management of working capital in supporting sales growth. The increasing trend observed towards the later periods, with a peak of 3.88 on December 31, 2023, and a stable range of 3.51 to 3.68 in subsequent periods, may indicate a more efficient utilization of working capital resources.

Overall, an analysis of Halliburton Company's working capital turnover suggests fluctuations in efficiency in managing its working capital, with the company showing improvements in recent periods. Monitoring this ratio is crucial for assessing the company's operational efficiency and its ability to convert working capital into sales revenue.