Halliburton Company (HAL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,391,000 | 7,948,000 | 6,713,000 | 4,974,000 | 8,012,000 |
| ROE | 28.09% | 19.78% | 21.70% | -59.21% | -14.12% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,638,000K ÷ $9,391,000K
= 28.09%
Halliburton Co.'s return on equity (ROE) has experienced fluctuations over the past five years. The ROE significantly improved in 2023, reaching 28.09%, reflecting a strong performance in generating profit relative to shareholders' equity. This is a positive indication of the company's ability to efficiently utilize its equity to generate earnings for shareholders.
In comparison, the ROE in 2022 and 2021 remained relatively stable at 19.78% and 21.70%, respectively, indicating consistent profitability and efficiency in utilizing equity during these periods.
However, there was a sharp decline in ROE in 2020 to -59.21%, signaling significant challenges in generating profits relative to shareholder equity, possibly due to adverse economic conditions or internal issues impacting the company's profitability.
Similarly, in 2019, the ROE was negative at -14.12%, indicating a continued struggle in generating profits relative to shareholder equity.
Overall, the positive trend in ROE in 2023 suggests an improvement in the company's profitability and operational efficiency, although it is essential to monitor future performance to ensure sustained growth and profitability.
Peer comparison
Dec 31, 2023