Halliburton Company (HAL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.00 | 0.00 | 0.00 | 0.31 | 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 |
| Debt-to-capital ratio | 0.42 | 0.00 | 0.00 | 0.00 | 0.45 | 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 |
| Debt-to-equity ratio | 0.72 | 0.00 | 0.00 | 0.00 | 0.81 | 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 |
| 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 |
Halliburton Company's solvency ratios indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
- The debt-to-assets ratio measures the proportion of a company's assets financed by debt. Halliburton's debt-to-assets ratio has fluctuated over the years but shows a decreasing trend recently. As of December 31, 2024, the ratio stands at 0.29, indicating that 29% of the company's assets are financed by debt.
2. Debt-to-capital ratio:
- The debt-to-capital ratio reflects the percentage of a company's capital structure that is funded by debt. Halliburton's debt-to-capital ratio also shows a decreasing trend over the years. As of December 31, 2024, the ratio is at 0.42, implying that 42% of the company's capital is in the form of debt.
3. Debt-to-equity ratio:
- The debt-to-equity ratio compares a company's debt to its shareholders' equity, revealing the extent of leverage used by the company. Halliburton's debt-to-equity ratio has decreased over the years, with the ratio as of December 31, 2024, at 0.72, suggesting that the company's debt is 72% of its equity.
4. Financial leverage ratio:
- The financial leverage ratio indicates the proportion of a company's assets that are financed by debt. Halliburton's financial leverage ratio has been on a downward trajectory, implying decreasing reliance on debt financing. As of December 31, 2024, the financial leverage ratio is at 2.44, signaling that the company's assets are financed 2.44 times by debt.
Overall, Halliburton's solvency ratios demonstrate a trend of decreasing leverage, indicating a stronger financial position and a reduced risk of financial distress in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.49 | 6.03 | 6.48 | 6.39 | 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 |
Halliburton Company's interest coverage ratio, which indicates the company's ability to meet interest payments on its debt, has shown fluctuations over the reported periods. The interest coverage ratio stood at negative values in the first half of 2020, signifying that the company's earnings were insufficient to cover its interest expenses during that time.
However, from the second half of 2020 onwards, there was a gradual improvement in the interest coverage ratio. By the end of 2021, the interest coverage ratio had reached a positive value, indicating that the company's earnings were able to cover its interest expenses comfortably.
The trend continued positively through 2022 and 2023, with the interest coverage ratio consistently improving. However, there was a slight decline in the ratio by the end of 2024, though it still remained at a healthy level.
Overall, the increase in the interest coverage ratio suggests an improvement in Halliburton Company's ability to meet its interest obligations over the periods analyzed. It indicates a strengthening financial position and a reduced risk of default on its debt.