Analysis of Reportable Segments
Halliburton Co. operates in 2 segments: Completion and Production and Drilling and Evaluation.
Segment Profit Margin
Halliburton Co., profit margin by reportable segment
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 14.26% | 12.40% | 1.20% | 7.81% | 17.82% |
| Drilling and Evaluation | 9.29% | 9.52% | 11.33% | 15.26% | 13.24% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Completion and Production | Completion and Production segment profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Drilling and Evaluation | Drilling and Evaluation segment profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Segment Profit Margin: Completion and Production
Halliburton Co.; Completion and Production; segment profit margin calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 2,278) | 1,621) | 107) | 1,069) | 3,610) |
| Revenue | 15,973) | 13,077) | 8,882) | 13,682) | 20,253) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 14.26% | 12.40% | 1.20% | 7.81% | 17.82% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 2,278 ÷ 15,973 = 14.26%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Completion and Production | Completion and Production segment profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
Segment Profit Margin: Drilling and Evaluation
Halliburton Co.; Drilling and Evaluation; segment profit margin calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 745) | 718) | 794) | 1,519) | 1,671) |
| Revenue | 8,022) | 7,543) | 7,005) | 9,951) | 12,617) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 9.29% | 9.52% | 11.33% | 15.26% | 13.24% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 745 ÷ 8,022 = 9.29%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Drilling and Evaluation | Drilling and Evaluation segment profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Segment Return on Assets (Segment ROA)
Halliburton Co., ROA by reportable segment
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 17.22% | 13.20% | 1.03% | 7.84% | 22.52% |
| Drilling and Evaluation | 9.27% | 9.16% | 9.37% | 14.42% | 14.87% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Completion and Production | Completion and Production segment ROA improved from 2016 to 2017 and from 2017 to 2018. |
| Drilling and Evaluation | Drilling and Evaluation segment ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Segment ROA: Completion and Production
Halliburton Co.; Completion and Production; segment ROA calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 2,278) | 1,621) | 107) | 1,069) | 3,610) |
| Total assets | 13,231) | 12,276) | 10,349) | 13,628) | 16,033) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 17.22% | 13.20% | 1.03% | 7.84% | 22.52% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × 2,278 ÷ 13,231 = 17.22%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Completion and Production | Completion and Production segment ROA improved from 2016 to 2017 and from 2017 to 2018. |
Segment ROA: Drilling and Evaluation
Halliburton Co.; Drilling and Evaluation; segment ROA calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | 745) | 718) | 794) | 1,519) | 1,671) |
| Total assets | 8,037) | 7,837) | 8,473) | 10,531) | 11,237) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 9.27% | 9.16% | 9.37% | 14.42% | 14.87% |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × 745 ÷ 8,037 = 9.27%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Drilling and Evaluation | Drilling and Evaluation segment ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level. |
Segment Asset Turnover
Halliburton Co., asset turnover by reportable segment
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 1.21 | 1.07 | 0.86 | 1.00 | 1.26 |
| Drilling and Evaluation | 1.00 | 0.96 | 0.83 | 0.94 | 1.12 |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Completion and Production | Completion and Production segment asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Drilling and Evaluation | Drilling and Evaluation segment asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Segment Asset Turnover: Completion and Production
Halliburton Co.; Completion and Production; segment asset turnover calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 15,973) | 13,077) | 8,882) | 13,682) | 20,253) |
| Total assets | 13,231) | 12,276) | 10,349) | 13,628) | 16,033) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.21 | 1.07 | 0.86 | 1.00 | 1.26 |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment asset turnover = Revenue ÷ Total assets
= 15,973 ÷ 13,231 = 1.21
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Completion and Production | Completion and Production segment asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Segment Asset Turnover: Drilling and Evaluation
Halliburton Co.; Drilling and Evaluation; segment asset turnover calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 8,022) | 7,543) | 7,005) | 9,951) | 12,617) |
| Total assets | 8,037) | 7,837) | 8,473) | 10,531) | 11,237) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 1.00 | 0.96 | 0.83 | 0.94 | 1.12 |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment asset turnover = Revenue ÷ Total assets
= 8,022 ÷ 8,037 = 1.00
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Drilling and Evaluation | Drilling and Evaluation segment asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Segment Capital Expenditures to Depreciation
Halliburton Co., capital expenditures to depreciation by reportable segment
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 1.29 | 1.17 | 0.56 | 1.32 | 1.68 |
| Drilling and Evaluation | 1.28 | 0.46 | 0.52 | 1.02 | 1.39 |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Completion and Production | Completion and Production segment capital expenditures to depreciation ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Drilling and Evaluation | Drilling and Evaluation segment capital expenditures to depreciation ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Segment Capital Expenditures to Depreciation: Completion and Production
Halliburton Co.; Completion and Production; segment capital expenditures to depreciation calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 1,364) | 1,111) | 500) | 1,526) | 1,953) |
| Depreciation, depletion and amortization | 1,058) | 953) | 900) | 1,160) | 1,162) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.29 | 1.17 | 0.56 | 1.32 | 1.68 |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation, depletion and amortization
= 1,364 ÷ 1,058 = 1.29
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Completion and Production | Completion and Production segment capital expenditures to depreciation ratio improved from 2016 to 2017 and from 2017 to 2018. |
Segment Capital Expenditures to Depreciation: Drilling and Evaluation
Halliburton Co.; Drilling and Evaluation; segment capital expenditures to depreciation calculation
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 657) | 261) | 297) | 650) | 1,297) |
| Depreciation, depletion and amortization | 512) | 563) | 569) | 638) | 934) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.28 | 0.46 | 0.52 | 1.02 | 1.39 |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 2018 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation, depletion and amortization
= 657 ÷ 512 = 1.28
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Drilling and Evaluation | Drilling and Evaluation segment capital expenditures to depreciation ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level. |
Revenue
Halliburton Co., revenue by reportable segment
US$ in millions
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 15,973) | 13,077) | 8,882) | 13,682) | 20,253) |
| Drilling and Evaluation | 8,022) | 7,543) | 7,005) | 9,951) | 12,617) |
| Total | 23,995) | 20,620) | 15,887) | 23,633) | 32,870) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Operating income (loss)
Halliburton Co., operating income (loss) by reportable segment
US$ in millions
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 2,278) | 1,621) | 107) | 1,069) | 3,610) |
| Drilling and Evaluation | 745) | 718) | 794) | 1,519) | 1,671) |
| Total | 3,023) | 2,339) | 901) | 2,588) | 5,281) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Capital expenditures
Halliburton Co., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 1,364) | 1,111) | 500) | 1,526) | 1,953) |
| Drilling and Evaluation | 657) | 261) | 297) | 650) | 1,297) |
| Corporate and other | 5) | 1) | 1) | 8) | 33) |
| Total | 2,026) | 1,373) | 798) | 2,184) | 3,283) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Depreciation, depletion and amortization
Halliburton Co., depreciation, depletion and amortization by reportable segment
US$ in millions
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 1,058) | 953) | 900) | 1,160) | 1,162) |
| Drilling and Evaluation | 512) | 563) | 569) | 638) | 934) |
| Corporate and other | 36) | 40) | 34) | 37) | 30) |
| Total | 1,606) | 1,556) | 1,503) | 1,835) | 2,126) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
Total assets
Halliburton Co., total assets by reportable segment
US$ in millions
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | |
|---|---|---|---|---|---|
| Completion and Production | 13,231) | 12,276) | 10,349) | 13,628) | 16,033) |
| Drilling and Evaluation | 8,037) | 7,837) | 8,473) | 10,531) | 11,237) |
| Corporate and shared assets | 4,714) | 4,972) | 8,178) | 12,783) | 4,970) |
| Total | 25,982) | 25,085) | 27,000) | 36,942) | 32,240) |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).