Halliburton Company (HAL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.29% | 98.89% | 96.56% | 98.46% | 68.45% |
| Operating profit margin | 16.66% | 17.74% | 13.36% | 11.77% | -17.06% |
| Pretax margin | 14.03% | 14.50% | 10.30% | 8.11% | -22.57% |
| Net profit margin | 10.90% | 11.46% | 7.76% | 9.52% | -20.62% |
Halliburton Company's profitability ratios indicate a positive trend over the years.
- Gross Profit Margin: Halliburton's gross profit margin has shown a consistent increase from 68.45% in 2020 to 98.29% in 2024. This suggests the company has been able to effectively control the cost of goods sold relative to its revenue, resulting in higher profitability.
- Operating Profit Margin: The operating profit margin has also improved steadily, starting from a negative margin of -17.06% in 2020 to 16.66% in 2024. This indicates that Halliburton has become more efficient in managing its operating expenses and generating profits from its core business activities.
- Pretax Margin: The pretax margin has shown a significant improvement, increasing from -22.57% in 2020 to 14.03% in 2024. This suggests that the company has effectively managed its pre-tax income in relation to its total revenue, indicating stronger overall financial performance.
- Net Profit Margin: Halliburton's net profit margin has also seen an upward trajectory, rising from -20.62% in 2020 to 10.90% in 2024. This indicates that the company has been able to control its expenses, including interest and taxes, to generate a higher net profit relative to its total revenue.
Overall, the improving trend in profitability ratios reflects Halliburton's effective cost management, operational efficiency, and stronger financial performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.94% | 16.54% | 11.64% | 8.06% | -11.78% |
| Return on assets (ROA) | 9.77% | 10.69% | 6.76% | 6.53% | -14.24% |
| Return on total capital | 21.18% | 23.98% | 17.05% | 11.36% | -17.27% |
| Return on equity (ROE) | 23.81% | 28.09% | 19.78% | 21.70% | -59.21% |
Halliburton Company's profitability ratios have shown a mixed performance over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) has increased steadily from -11.78% in 2020 to 14.94% in 2024. This indicates that the company's operating income generated from its assets has improved significantly over the period.
2. Return on assets (ROA) has also shown an improvement, starting at -14.24% in 2020 and reaching 9.77% in 2024. This metric measures the company's overall profitability in relation to its total assets, reflecting a positive trend over the years.
3. Return on total capital has fluctuated but generally increased from -17.27% in 2020 to 21.18% in 2024. This ratio assesses the company's ability to generate profits from its total invested capital, showing a positive trend in capital efficiency.
4. Return on equity (ROE) has been volatile, with a significant decrease in 2020 (-59.21%), followed by an increasing trend to reach 23.81% in 2024. ROE measures the profitability of the company in relation to shareholders' equity, indicating fluctuations in shareholder returns over the years.
Overall, Halliburton Company has shown improvements in its profitability ratios over the five-year period, reflecting enhanced operational efficiency and financial performance.