Halliburton Company (HAL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,638,000 | 1,572,000 | 1,457,000 | -2,945,000 | -1,131,000 |
| Total assets | US$ in thousands | 24,683,000 | 23,255,000 | 22,321,000 | 20,680,000 | 25,377,000 |
| ROA | 10.69% | 6.76% | 6.53% | -14.24% | -4.46% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,638,000K ÷ $24,683,000K
= 10.69%
Halliburton Co.'s return on assets (ROA) has demonstrated significant fluctuations over the past five years. In 2023, the ROA stands at 10.69%, reflecting an improvement from the previous year's 6.76%. This indicates that the company generated $0.1069 in net income for every dollar of assets in 2023.
The positive trend in ROA suggests that Halliburton Co. has been more effective in utilizing its assets to generate profits in the most recent year compared to the past. However, it is important to note that the ROA was negative in 2020 and 2019, indicating that the company incurred losses relative to its asset base during those years.
Overall, the increasing trend in ROA from 2019 to 2023 indicates potential improvements in Halliburton Co.'s asset efficiency and profitability. It is essential for investors and stakeholders to monitor this ratio over time to assess the company's performance in generating returns from its assets effectively.
Peer comparison
Dec 31, 2023