Halliburton Company (HAL)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,541,000 | 7,636,000 | 7,928,000 | 9,127,000 | 9,132,000 |
| Total stockholders’ equity | US$ in thousands | 10,506,000 | 9,391,000 | 7,948,000 | 6,713,000 | 4,974,000 |
| Debt-to-capital ratio | 0.42 | 0.45 | 0.50 | 0.58 | 0.65 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $7,541,000K ÷ ($7,541,000K + $10,506,000K)
= 0.42
The debt-to-capital ratio of Halliburton Company has shown a decreasing trend over the past five years. As of December 31, 2020, the ratio stood at 0.65, indicating that 65% of the company's capital structure was funded by debt. This ratio has steadily declined to 0.42 as of December 31, 2024, suggesting a decrease in reliance on debt financing and a stronger financial position with a higher proportion of capital funded by equity. This downward trend in the debt-to-capital ratio is generally viewed positively by investors and creditors, as it signals improved financial health and reduced financial risk for the company.
Peer comparison
Dec 31, 2024