Halliburton Company (HAL)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.50	0.00	0.00	0.00	0.58	0.00	0.00	0.00	0.65	0.22	0.22	0.18	0.56	0.00	0.00	0.00

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 of Halliburton Co. has shown a gradual decline over the past two years, from 0.55 in Q1 2022 to 0.45 in Q4 2023. This indicates a trend of decreasing reliance on debt financing relative to the company's total capital structure. A lower debt-to-capital ratio suggests a healthier financial position and lower financial risk, as the company is using less debt to finance its operations compared to its equity.

The decreasing trend in the debt-to-capital ratio could be attributed to various factors such as improved profitability, more efficient capital management, or a strategic shift towards reducing debt levels. It is also worth noting that maintaining an optimal balance between debt and equity is crucial for companies to manage their financial leverage effectively and support sustainable growth.

Overall, the declining debt-to-capital ratio of Halliburton Co. reflects a positive financial trajectory and suggests a strengthening capital structure, positioning the company favorably in terms of financial stability and risk management.