Stock Analysis on Net
Stock Analysis on Net

Halliburton Co. (NYSE:HAL)

This company has been moved to the archive! The financial data has not been updated since February 13, 2019.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Halliburton Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Total Assets
Total assets (as reported) 25,982 25,085 27,000 36,942 32,240
Less: Goodwill 2,825 2,693 2,414 2,109 2,330
Total assets (adjusted) 23,157 22,392 24,586 34,833 29,910
Adjustment to Company Shareholders’ Equity
Company shareholders’ equity (as reported) 9,522 8,322 9,409 15,462 16,267
Less: Goodwill 2,825 2,693 2,414 2,109 2,330
Company shareholders’ equity (adjusted) 6,697 5,629 6,995 13,353 13,937

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).

Halliburton Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Halliburton Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Total Asset Turnover
Reported total asset turnover 0.92 0.82 0.59 0.64 1.02
Adjusted total asset turnover 1.04 0.92 0.65 0.68 1.10
Financial Leverage
Reported financial leverage 2.73 3.01 2.87 2.39 1.98
Adjusted financial leverage 3.46 3.98 3.51 2.61 2.15
Return on Equity (ROE)
Reported ROE 17.39% -5.56% -61.25% -4.34% 21.52%
Adjusted ROE 24.73% -8.23% -82.39% -5.03% 25.11%
Return on Assets (ROA)
Reported ROA 6.37% -1.85% -21.34% -1.82% 10.86%
Adjusted ROA 7.15% -2.07% -23.44% -1.93% 11.70%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Halliburton Co. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Halliburton Co. adjusted financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Halliburton Co. adjusted ROE improved from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Halliburton Co. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.

Halliburton Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Revenue 23,995 20,620 15,887 23,633 32,870
Total assets 25,982 25,085 27,000 36,942 32,240
Activity Ratio
Total asset turnover1 0.92 0.82 0.59 0.64 1.02
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 23,995 20,620 15,887 23,633 32,870
Adjusted total assets 23,157 22,392 24,586 34,833 29,910
Activity Ratio
Adjusted total asset turnover2 1.04 0.92 0.65 0.68 1.10

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).

2018 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 23,995 ÷ 25,982 = 0.92

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 23,995 ÷ 23,157 = 1.04

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Halliburton Co. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets 25,982 25,085 27,000 36,942 32,240
Company shareholders’ equity 9,522 8,322 9,409 15,462 16,267
Solvency Ratio
Financial leverage1 2.73 3.01 2.87 2.39 1.98
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 23,157 22,392 24,586 34,833 29,910
Adjusted company shareholders’ equity 6,697 5,629 6,995 13,353 13,937
Solvency Ratio
Adjusted financial leverage2 3.46 3.98 3.51 2.61 2.15

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).

2018 Calculations

1 Financial leverage = Total assets ÷ Company shareholders’ equity
= 25,982 ÷ 9,522 = 2.73

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted company shareholders’ equity
= 23,157 ÷ 6,697 = 3.46

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Halliburton Co. adjusted financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company 1,656 (463) (5,763) (671) 3,500
Company shareholders’ equity 9,522 8,322 9,409 15,462 16,267
Profitability Ratio
ROE1 17.39% -5.56% -61.25% -4.34% 21.52%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company 1,656 (463) (5,763) (671) 3,500
Adjusted company shareholders’ equity 6,697 5,629 6,995 13,353 13,937
Profitability Ratio
Adjusted ROE2 24.73% -8.23% -82.39% -5.03% 25.11%

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).

2018 Calculations

1 ROE = 100 × Net income (loss) attributable to company ÷ Company shareholders’ equity
= 100 × 1,656 ÷ 9,522 = 17.39%

2 Adjusted ROE = 100 × Net income (loss) attributable to company ÷ Adjusted company shareholders’ equity
= 100 × 1,656 ÷ 6,697 = 24.73%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Halliburton Co. adjusted ROE improved from 2016 to 2017 and from 2017 to 2018.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company 1,656 (463) (5,763) (671) 3,500
Total assets 25,982 25,085 27,000 36,942 32,240
Profitability Ratio
ROA1 6.37% -1.85% -21.34% -1.82% 10.86%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to company 1,656 (463) (5,763) (671) 3,500
Adjusted total assets 23,157 22,392 24,586 34,833 29,910
Profitability Ratio
Adjusted ROA2 7.15% -2.07% -23.44% -1.93% 11.70%

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).

2018 Calculations

1 ROA = 100 × Net income (loss) attributable to company ÷ Total assets
= 100 × 1,656 ÷ 25,982 = 6.37%

2 Adjusted ROA = 100 × Net income (loss) attributable to company ÷ Adjusted total assets
= 100 × 1,656 ÷ 23,157 = 7.15%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Halliburton Co. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.