Halliburton Company (HAL)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 2,264,000 2,346,000 3,044,000 2,563,000 2,268,000
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 5,608,000 5,345,000 4,306,000 4,421,000 4,878,000
Cash ratio 0.40 0.44 0.71 0.58 0.46

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,264,000K + $—K) ÷ $5,608,000K
= 0.40

The cash ratio for Halliburton Co. has been fluctuating over the past five years. The cash ratio measures a company's ability to pay off its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In 2023, the cash ratio decreased to 0.62 from 0.64 in 2022, suggesting a slight decline in the company's liquidity position. Despite this decrease, the ratio remains above 0.5, indicating that Halliburton Co. still has sufficient cash on hand to cover its short-term liabilities.

Comparing to previous years, the cash ratio was highest in 2021 at 0.91, reflecting a significant increase in liquidity compared to 2020 and 2019. This improvement might indicate better cash management or increased cash reserves during that period.

Overall, while there has been some variability in the cash ratio for Halliburton Co. over the past five years, the company has generally maintained a reasonable level of liquidity to meet its short-term obligations. It is important to assess the trend in conjunction with other financial ratios and factors to gain a comprehensive understanding of the company's financial health.


Peer comparison

Dec 31, 2023


See also:

Halliburton Company Cash Ratio