Halliburton Company (HAL)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,618,000	2,264,000	2,346,000	3,044,000	2,563,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	6,050,000	5,608,000	5,345,000	4,306,000	4,421,000
Cash ratio		0.43	0.40	0.44	0.71	0.58

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,618,000K + $—K) ÷ $6,050,000K
= 0.43

The cash ratio of Halliburton Company has demonstrated some fluctuations over the past five years. As of December 31, 2020, the company's cash ratio stood at 0.58, indicating that for every dollar of current liabilities, the company had $0.58 in cash or cash equivalents.

By December 31, 2021, the cash ratio had improved to 0.71, showing that the company had a higher proportion of cash reserves relative to its current liabilities. However, the ratio declined in the following years, reaching 0.40 by December 31, 2023, and slightly increasing to 0.43 by December 31, 2024.

Overall, the downward trend in the cash ratio from 2021 to 2024 suggests that Halliburton may be experiencing challenges in maintaining sufficient cash reserves to cover its short-term obligations. Further analysis of the company's cash management practices and liquidity position would be beneficial to assess its ability to meet financial obligations in the short term.