Halliburton Company (HAL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,822,000 | 3,948,000 | 4,114,000 | 4,093,000 | 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 |
| Long-term debt | US$ in thousands | 7,541,000 | — | — | — | 7,636,000 | — | — | — | 7,928,000 | — | — | — | 9,127,000 | — | — | — | 9,132,000 | 1,500,000 | 1,500,000 | 1,500,000 |
| Total stockholders’ equity | US$ in thousands | 10,506,000 | 10,296,000 | 10,000,000 | 9,636,000 | 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 |
| Return on total capital | 21.18% | 38.34% | 41.14% | 42.48% | 23.98% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,822,000K ÷ ($7,541,000K + $10,506,000K)
= 21.18%
Halliburton Company's return on total capital has shown significant fluctuations over the reported period. The ratio was negative in the initial quarters of the data set, indicating that the company was not efficiently utilizing its total capital to generate returns for its investors. However, starting from the second quarter of 2021, the return on total capital turned positive and experienced a steady increase in subsequent quarters, reaching a peak of 43.83% in June 30, 2023.
This positive trend suggests that the company improved its capital allocation strategies and operational efficiency during this period. The return on total capital then slightly decreased in the last reported quarter, standing at 21.18% on December 31, 2024. Overall, the upward trajectory in the return on total capital indicates that Halliburton Company has been more effective in generating profits from its total capital base in recent years, potentially leading to increased value for its stakeholders.
Peer comparison
Dec 31, 2024