Halliburton Company (HAL)

Debt-to-equity 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-equity ratio		0.72	0.81	1.00	1.36	1.84

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,541,000K ÷ $10,506,000K
= 0.72

The debt-to-equity ratio of Halliburton Company has shown a decreasing trend over the last five years, indicating an improvement in the company's financial leverage and risk management.

As of December 31, 2020, the ratio stood at 1.84, signifying that for every dollar of equity, the company had $1.84 in debt. Subsequently, the ratio declined to 1.36 by December 31, 2021, and continued to decrease to 1.00 by the end of 2022.

By December 31, 2023, the ratio dropped further to 0.81, suggesting a more conservative capital structure with a decreasing reliance on debt financing. Finally, as of December 31, 2024, the ratio reached 0.72, indicating that the company had $0.72 in debt for every dollar of equity, demonstrating a strong financial position with a lower level of debt relative to equity.

Overall, the declining trend in Halliburton Company's debt-to-equity ratio reflects a positive shift towards a more balanced and sustainable capital structure, potentially reducing the company's financial risk and enhancing its long-term stability.