Halliburton Company (HAL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	2,264,000	2,346,000	3,044,000	2,563,000	2,268,000
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	4,860,000	4,627,000	3,666,000	3,071,000	4,577,000
Total current liabilities	US$ in thousands	5,608,000	5,345,000	4,306,000	4,421,000	4,878,000
Quick ratio		1.27	1.30	1.56	1.27	1.40

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,264,000K + $—K + $4,860,000K) ÷ $5,608,000K
= 1.27

The quick ratio of Halliburton Co., a measure of the company's ability to meet its short-term obligations with its most liquid assets, has displayed some fluctuation over the past five years. In 2023, the quick ratio stands at 1.48, slightly lower than the previous year's ratio of 1.50. This indicates that the company possesses $1.48 of liquid assets for every $1 of current liabilities, suggesting a relatively healthy liquidity position.

Comparing the current ratio to 2021 and 2020, where the quick ratio was 1.76 and 1.49, respectively, the decreasing trend in 2023 may raise a slight concern about the company's quick asset availability to cover immediate liabilities. However, it's worth noting that the 2023 quick ratio of 1.48 still remains above 1, reflecting that the company has sufficient liquid assets to meet its short-term obligations.

Furthermore, when contrasted with the quick ratio from 2019 (1.65), the current ratio has experienced a decline over the past four years. This downward trend indicates the need for further investigation into the company's liquidity management and the efficiency of its current asset management.

Overall, while the 2023 quick ratio of 1.48 suggests satisfactory liquidity levels for Halliburton Co., the downward trend in recent years warrants continued monitoring to ensure the company's ability to meet its short-term obligations remains robust.