Halliburton Company (HAL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,683,000 | 23,255,000 | 22,321,000 | 20,680,000 | 25,377,000 |
| Total stockholders’ equity | US$ in thousands | 9,391,000 | 7,948,000 | 6,713,000 | 4,974,000 | 8,012,000 |
| Financial leverage ratio | 2.63 | 2.93 | 3.33 | 4.16 | 3.17 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,683,000K ÷ $9,391,000K
= 2.63
The financial leverage ratio of Halliburton Co. has shown a declining trend over the past five years, decreasing from 4.16 in 2020 to 2.63 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company has a lower level of financial risk and is less vulnerable to economic downturns or changes in interest rates. It also indicates that a larger portion of the company's assets is financed by equity rather than debt. Overall, the decreasing trend in the financial leverage ratio of Halliburton Co. reflects a more conservative capital structure and improved financial stability over the years.
Peer comparison
Dec 31, 2023