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 2021 and 2022, also an increase of 13.41% 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.
