Halliburton Company (HAL)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,083,000 | 4,001,000 | 3,810,000 | 3,173,000 | 2,707,000 | 2,281,000 | 1,881,000 | 1,941,000 | 1,800,000 | 1,154,000 | 850,000 | -1,495,000 | -2,436,000 | -3,992,000 | -3,598,000 | -1,384,000 | -448,000 | 1,812,000 | 1,992,000 | 2,478,000 |
| Interest expense (ttm) | US$ in thousands | 606,000 | 366,000 | 366,000 | 347,000 | 375,000 | 409,000 | 432,000 | 451,000 | 469,000 | 486,000 | 492,000 | 496,000 | 505,000 | 521,000 | 540,000 | 560,000 | 569,000 | 565,000 | 564,000 | 557,000 |
| Interest coverage | 6.74 | 10.93 | 10.41 | 9.14 | 7.22 | 5.58 | 4.35 | 4.30 | 3.84 | 2.37 | 1.73 | -3.01 | -4.82 | -7.66 | -6.66 | -2.47 | -0.79 | 3.21 | 3.53 | 4.45 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,083,000K ÷ $606,000K
= 6.74
Halliburton Co.'s interest coverage ratio has shown a positive trend over the past eight quarters. The company's ability to cover its interest expenses has improved steadily from Q1 2022 to Q4 2023. The interest coverage ratio has more than doubled during this period, indicating a stronger ability to meet interest payment obligations from operating income.
In Q1 2022, Halliburton had an interest coverage ratio of 4.38, which increased to 10.47 in Q4 2023. This upward trend reflects the company's improving financial health and operational efficiency. The consistent growth in the interest coverage ratio suggests that Halliburton has been generating sufficient operating income to comfortably cover its interest expenses.
Furthermore, the interest coverage ratios for the most recent quarters (Q3 2023 and Q4 2023) are notably higher than in the corresponding quarters of the previous year (Q3 2022 and Q4 2022), indicating a substantial improvement in the company's financial position over time.
Overall, the increasing trend in Halliburton Co.'s interest coverage ratio signals positive financial performance and indicates that the company has been effectively managing its debt obligations.
Peer comparison
Dec 31, 2023