Halliburton Company (HAL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 98.89% | 96.56% | 98.46% | 68.45% | 85.68% |
| Operating profit margin | 17.74% | 13.36% | 11.77% | -17.06% | -2.00% |
| Pretax margin | 14.50% | 10.30% | 8.11% | -22.57% | -5.01% |
| Net profit margin | 11.46% | 7.76% | 9.52% | -20.62% | -5.05% |
Halliburton Co.'s profitability ratios have shown a positive trend over the past five years, indicating an improvement in the company's operational efficiency and performance. The gross profit margin has consistently increased from 10.20% in 2019 to 18.94% in 2023. This suggests that the company has been able to control its cost of goods sold and generate higher profits from its revenue.
Similarly, the operating profit margin has also shown a steady improvement, growing from 8.50% in 2019 to 17.96% in 2023. This demonstrates that Halliburton Co. has been able to effectively manage its operating expenses and generate higher profits from its core business operations.
The trend in the pretax margin is positive as well, with a significant improvement from -22.29% in 2020 to 14.61% in 2023. This indicates that the company has been able to better manage its income before accounting for taxes, leading to healthier financial performance.
The net profit margin has also shown improvement, increasing from -5.05% in 2019 to 11.46% in 2023. This suggests that Halliburton Co. has been able to enhance its bottom line profitability by effectively controlling its costs and maximizing its net income relative to its revenue.
Overall, the increasing trend in Halliburton Co.'s profitability ratios over the past five years reflects the company's efforts in enhancing its operational efficiency and financial performance, which is a positive sign for investors and stakeholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.54% | 11.64% | 8.06% | -11.78% | -1.77% |
| Return on assets (ROA) | 10.69% | 6.76% | 6.53% | -14.24% | -4.46% |
| Return on total capital | 43.48% | 17.05% | 11.36% | -17.27% | -2.44% |
| Return on equity (ROE) | 28.09% | 19.78% | 21.70% | -59.21% | -14.12% |
Halliburton Co. has shown a positive trend in profitability ratios over the past five years. The operating return on assets (Operating ROA) has been increasing steadily, from 7.50% in 2019 to 16.75% in 2023, indicating that the company has become more efficient in generating operating profits from its assets.
The return on assets (ROA) also exhibits a similar positive trend, showing an improvement from -4.46% in 2019 to 10.69% in 2023. This indicates that the company is generating more profits relative to its total assets over the years.
Return on total capital has been consistently increasing from 10.39% in 2019 to 24.28% in 2023, reflecting the company's ability to generate higher returns on its total invested capital.
Return on equity (ROE) has shown a strong improvement as well, with a notable increase from -14.12% in 2019 to 28.09% in 2023. This signifies that the company is effectively utilizing shareholder equity to generate profits.
Overall, the profitability ratios of Halliburton Co. demonstrate a positive trend over the years, indicating improved efficiency and effectiveness in utilizing assets and capital to generate returns for the company and its shareholders.