Halliburton Company (HAL)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 25,587,000 | 25,331,000 | 25,152,000 | 24,654,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 10,506,000 | 10,296,000 | 10,000,000 | 9,636,000 | 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 |
| Financial leverage ratio | 2.44 | 2.46 | 2.52 | 2.56 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $25,587,000K ÷ $10,506,000K
= 2.44
The financial leverage ratio of Halliburton Company has demonstrated a declining trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations. As of December 31, 2024, the financial leverage ratio stands at 2.44, which suggests that for every dollar of equity, the company has $2.44 of debt. This ratio has steadily decreased from 4.16 as of December 31, 2020.
The declining trend in the financial leverage ratio could be a result of various factors, such as prudent debt management, improved profitability, or a strategic shift towards a more conservative capital structure. A lower financial leverage ratio typically indicates a lower financial risk for the company, as it implies lower levels of debt relative to equity.
Overall, the decreasing trend in Halliburton Company's financial leverage ratio signifies a strengthening financial position and a more conservative approach to capital structure, which may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2024