Halliburton

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin decreased from -2.27% in 2017 to 9.60% in 2021.
  • The EBIT Margin for the period under analysis was 5.58%, with 2021 and 2017 performing the worst and best, respectively.
  • In the current year, Halliburton was able to cover its interest liabilities 12.02 times in the current year compared to 2017 when it was 12.65 times.
  • The Capex to Sales stood at 0.31 in 2021 from 0.64 in 2017, implying a low performance of the business in relation to revenue.

Profitability

  • The revenue of Halliburton has increased over the years. The revenue increased by 26.45% between 2017 and 2021. There occurred an decrease of 2.44% between 2020 and 2021 (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 1.79:1 to 1.64:1 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 158 days to recover money owed by customers.
  • Working capital steadily increase between 2017 and 2021, rising by 46.07% with a YoY rise of 6.09%.

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 0.97 in the current year.

 

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