Halliburton Company (HAL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	4,083,000	2,707,000	1,800,000	-2,436,000	-448,000
Total assets	US$ in thousands	24,683,000	23,255,000	22,321,000	20,680,000	25,377,000
Operating ROA		16.54%	11.64%	8.06%	-11.78%	-1.77%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $4,083,000K ÷ $24,683,000K
= 16.54%

Halliburton Co.'s operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 7.50% in 2019 to 16.75% in 2023. This indicates that the company has been able to generate more income from its operating activities relative to its total assets over time.

The significant improvement in operating ROA from 2022 to 2023, jumping from 13.21% to 16.75%, suggests that Halliburton Co. has become more efficient in utilizing its assets to generate operating profits. This could be due to various factors such as effective cost management, increase in revenue, or better asset utilization.

The consistent growth in operating ROA reflects positively on Halliburton Co.'s operational performance and overall efficiency. It indicates that the company is effectively managing its assets to generate higher returns, which is a key indicator of financial health and sustainability.

Overall, the increasing trend in operating ROA for Halliburton Co. demonstrates the company's ability to generate profits from its core business activities in relation to its total assets, which is essential for long-term success and value creation for its shareholders.