Halliburton Company (HAL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | 7,928,000 | 9,127,000 | 9,132,000 | 10,316,000 |
| Total stockholders’ equity | US$ in thousands | 9,391,000 | 7,948,000 | 6,713,000 | 4,974,000 | 8,012,000 |
| Debt-to-capital ratio | 0.00 | 0.50 | 0.58 | 0.65 | 0.56 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $9,391,000K)
= 0.00
The debt-to-capital ratio for Halliburton Co. has shown a declining trend over the past five years. The ratio decreased from 0.56 in 2019 to 0.45 in 2023, indicating improved financial health in terms of leverage. A decreasing trend in the debt-to-capital ratio suggests that the company is relying less on debt financing in relation to its total capital structure. This could be a positive signal to investors and creditors as it reflects a lower risk of financial distress and potential for sustainable growth. However, it is essential to consider the industry norms and compare the ratio with competitors to gain a better understanding of Halliburton's leverage position relative to its peers.
Peer comparison
Dec 31, 2023