Halliburton Company (HAL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,683,000 | 24,442,000 | 24,073,000 | 23,619,000 | 23,255,000 | 22,563,000 | 22,445,000 | 22,073,000 | 22,321,000 | 21,025,000 | 20,917,000 | 20,575,000 | 20,680,000 | 20,874,000 | 21,104,000 | 23,622,000 | 25,377,000 | 26,789,000 | 26,880,000 | 26,989,000 |
| 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 |
| Financial leverage ratio | 2.63 | 2.67 | 2.77 | 2.81 | 2.93 | 2.96 | 3.15 | 3.15 | 3.33 | 3.70 | 3.86 | 3.98 | 4.16 | 4.01 | 4.07 | 3.46 | 3.17 | 2.75 | 2.83 | 2.81 |
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 been gradually decreasing from Q4 2022 to Q4 2023, indicating a positive trend in the company's leverage position. The ratio declined from 2.93 in Q4 2022 to 2.63 in Q4 2023. This suggests that the company has been reducing its reliance on debt to finance its operations and investments, which can be seen as a positive signal of financial health and stability.
The decreasing trend in the financial leverage ratio implies that Halliburton Co. may have been improving its equity base or generating higher profits to support its activities without increasing debt levels. A lower financial leverage ratio generally indicates a lower risk of financial distress and can enhance the company's ability to weather economic downturns.
Overall, the declining trend in Halliburton Co.'s financial leverage ratio demonstrates prudence in managing its capital structure and indicates a strengthening financial position over the evaluated period.
Peer comparison
Dec 31, 2023