Halliburton Company (HAL)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	4,083,000	4,001,000	3,810,000	3,173,000	2,707,000	2,281,000	1,881,000	1,941,000	1,800,000	1,154,000	850,000	-1,495,000	-2,436,000	-3,992,000	-3,598,000	-1,384,000	-448,000	1,812,000	1,992,000	2,478,000
Long-term debt	US$ in thousands	—	—	—	—	7,928,000	—	—	—	9,127,000	—	—	—	9,132,000	1,500,000	1,500,000	1,500,000	10,316,000	—	—	—
Total stockholders’ equity	US$ in thousands	9,391,000	9,150,000	8,693,000	8,415,000	7,948,000	7,621,000	7,130,000	7,017,000	6,713,000	5,681,000	5,420,000	5,170,000	4,974,000	5,200,000	5,189,000	6,830,000	8,012,000	9,745,000	9,508,000	9,605,000
Return on total capital		43.48%	43.73%	43.83%	37.71%	17.05%	29.93%	26.38%	27.66%	11.36%	20.31%	15.68%	-28.92%	-17.27%	-59.58%	-53.79%	-16.61%	-2.44%	18.59%	20.95%	25.80%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,083,000K ÷ ($—K + $9,391,000K)
= 43.48%

Halliburton Co.'s return on total capital has shown a consistent positive trend over the past eight quarters. The company's return on total capital has increased steadily from 12.70% in Q1 2022 to 24.28% in Q4 2023, indicating an improvement in the company's efficiency in generating profits relative to its total capital employed. This upward trend suggests that Halliburton Co. has been effectively utilizing its capital to generate higher returns for its shareholders. Overall, the increasing trend in the return on total capital reflects positively on the company's financial performance and management of its resources.