Halliburton Company (HAL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.34 | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 | 0.00 | 0.00 | 0.44 | 0.07 | 0.07 | 0.06 | 0.41 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.50 | 0.00 | 0.00 | 0.00 | 0.58 | 0.00 | 0.00 | 0.00 | 0.65 | 0.22 | 0.22 | 0.18 | 0.56 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 1.00 | 0.00 | 0.00 | 0.00 | 1.36 | 0.00 | 0.00 | 0.00 | 1.84 | 0.29 | 0.29 | 0.22 | 1.29 | 0.00 | 0.00 | 0.00 |
| 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 |
Halliburton Co.'s solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the extent of its leverage.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets financed by debt. The decreasing trend from Q1 2023 to Q4 2023 (0.34 to 0.31) suggests the company has been reducing its reliance on debt to fund its assets, which is generally considered favorable.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the share of the company's capital structure provided by debt. Halliburton Co.'s ratio has also decreased over the quarters, indicating a reduction in debt financing relative to total capital. This implies a lower financial risk and reliance on debt.
3. Debt-to-equity ratio: This ratio signifies the extent to which debt is financing the company relative to shareholders' equity. The declining trend, from 1.22 in Q1 2022 to 0.81 in Q4 2023, demonstrates that the company has been reducing its debt relative to equity over time, which can enhance financial stability.
4. Financial leverage ratio: The financial leverage ratio measures the company's level of debt concerning equity capital. The decreasing trend in the ratio over the quarters indicates that the company has been decreasing its reliance on debt to fund its operations, enhancing financial flexibility and reducing risk.
Overall, the decreasing trends in these solvency ratios for Halliburton Co. suggest a positive financial management strategy, with a reduced reliance on debt financing and a strengthening of the company's financial position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Halliburton Co.'s interest coverage has shown a consistent upward trend from Q1 2022 to Q4 2023, indicating the company's improved ability to meet its interest obligations using its operating income. The interest coverage ratio has increased from 4.38 in Q1 2022 to 10.47 in Q4 2023, reflecting a strengthening financial position over the period.
This steady improvement in interest coverage suggests that Halliburton Co. has been effectively managing its debt and generating sufficient operating income to comfortably cover its interest expenses. The company's interest coverage ratio has more than doubled from Q1 2022 to Q4 2023, indicating a reduced financial risk and enhanced debt-servicing capacity.
Overall, the increasing trend in interest coverage for Halliburton Co. demonstrates a positive financial performance and a healthy liquidity position, which can reassure investors and creditors about the company's ability to meet its debt obligations.