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Halliburton Co. (NYSE:HAL)

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

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Halliburton Co., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Accounts payable 11.62 10.18 6.53 5.47 8.73
Accrued employee compensation and benefits 2.75 2.97 2.01 2.27 3.20
Taxes other than income 0.95 0.92 0.81 0.79 1.26
Short-term borrowings and current maturities of long-term debt 0.14 2.04 0.63 1.78 0.04
Liabilities for Macondo well incident 0.00 0.00 1.37 1.08 1.14
Other current liabilities 3.03 3.26 3.55 3.11 3.87
Current liabilities 18.48% 19.38% 14.90% 14.51% 18.25%
Long-term debt, excluding current maturities 40.11 41.58 45.24 39.76 24.32
Employee compensation and benefits 1.86 2.43 2.13 1.24 2.14
Other liabilities 2.82 3.33 2.74 2.56 4.74
Noncurrent liabilities 44.78% 47.34% 50.11% 43.55% 31.20%
Total liabilities 63.27% 66.72% 65.01% 58.06% 49.45%
Common shares, par value $2.50 per share 10.28 10.66 9.90 7.25 8.31
Paid-in capital in excess of par value 0.81 0.83 0.74 0.74 0.96
Accumulated other comprehensive loss -1.37 -1.87 -1.68 -0.98 -1.24
Retained earnings 52.88 50.50 52.37 55.56 67.65
Treasury stock, at cost -25.96 -26.94 -26.49 -20.71 -25.22
Company shareholders’ equity 36.65% 33.18% 34.85% 41.85% 50.46%
Noncontrolling interest in consolidated subsidiaries 0.08 0.11 0.14 0.09 0.10
Total shareholders’ equity 36.73% 33.28% 34.99% 41.94% 50.55%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capitalization structure exhibits a significant shift toward higher leverage over the five-year period ending December 31, 2018. The balance sheet transitioned from a position where shareholders' equity was the dominant funding source to one where total liabilities constitute the majority of the total assets and equity.

Liability Trends and Composition
Total liabilities increased from 49.45% of total liabilities and shareholders' equity in 2014 to 63.27% in 2018, reaching a peak of 66.72% in 2017. This growth was driven primarily by long-term debt, excluding current maturities, which rose from 24.32% in 2014 to 40.11% in 2018, with a peak of 45.24% in 2016. In contrast, current liabilities remained more stable, fluctuating between 14.51% and 19.38% throughout the period. A notable increase is observed in accounts payable, which climbed from 8.73% in 2014 to 11.62% by 2018, suggesting an increase in reliance on trade credit. Additionally, liabilities related to the Macondo well incident, which represented approximately 1.14% to 1.37% of the balance sheet between 2014 and 2016, were absent by 2017.
Equity Erosion and Capital Management
Total shareholders' equity experienced a consistent decline from 50.55% in 2014 to 36.73% in 2018, bottoming out at 33.28% in 2017. The primary driver of this decline was the contraction of retained earnings, which fell from 67.65% of the total balance sheet in 2014 to 52.88% in 2018. Treasury stock remained a significant contra-equity account, consistently offsetting a large portion of the equity, with values ranging from -20.71% to -26.94%. Common shares as a percentage of the total balance sheet showed moderate volatility, ending the period at 10.28%.
Overall Financial Position
The data indicates a strategic or operational shift toward a more debt-heavy capital structure. The simultaneous increase in long-term debt and the decrease in retained earnings suggest a period of capital intensification or the funding of losses and shareholder returns through borrowing. While total liabilities peaked in 2017, a slight correction occurred in 2018, with total liabilities decreasing to 63.27% and total shareholders' equity recovering slightly to 36.73%.

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