Halliburton

Key Performance Metrics

  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin decreased from –5.05% in 2019 to 11.46% in 2023.
  • The EBIT Margin for the period under analysis was 3.79%, with 2020 and 2023 performing the worst and best, respectively.
  • In the current year, Halliburton was able to cover its interest liabilities 9.45 times in the current year compared to 2019 when it was 0.98 times.
  • The Capex to Sales stood at 0.31 in 2023 from 0.64 in 2019, implying a low performance of the business in relation to revenue.

Profitability

  • The revenue of Halliburton has fluctuated over the years. The revenue decreased by 35.54% between 2019 and 2020. There occurred an increase of 32.70% between 2022 and 2023 (the current period).
  • Halliburton’s performance in profitability looks poor as the return on equity also recorded poor performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as current ratio decreased from 2.30:1 to 2.06:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.
  • Receivables days improved over the 5-year period as it took an average of 79.984 days to recover money owed by customers.
  • Working capital steadily fluctuated between 2019 and 2023, changing by –3.28% and 30%.

Capital Structure

  • Halliburton is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 0.94 in the current year.

 

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