Net Profit Margin
since 2005
Calculation
Halliburton Co., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to company1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2018 | 6.90% | = | 100 | × | 1,656) | ÷ | 23,995) |
| Dec 31, 2017 | -2.25% | = | 100 | × | (463) | ÷ | 20,620) |
| Dec 31, 2016 | -36.27% | = | 100 | × | (5,763) | ÷ | 15,887) |
| Dec 31, 2015 | -2.84% | = | 100 | × | (671) | ÷ | 23,633) |
| Dec 31, 2014 | 10.65% | = | 100 | × | 3,500) | ÷ | 32,870) |
| Dec 31, 2013 | 7.23% | = | 100 | × | 2,125) | ÷ | 29,402) |
| Dec 31, 2012 | 9.24% | = | 100 | × | 2,635) | ÷ | 28,503) |
| Dec 31, 2011 | 11.43% | = | 100 | × | 2,839) | ÷ | 24,829) |
| Dec 31, 2010 | 10.21% | = | 100 | × | 1,835) | ÷ | 17,973) |
| Dec 31, 2009 | 7.80% | = | 100 | × | 1,145) | ÷ | 14,675) |
| Dec 31, 2008 | 8.41% | = | 100 | × | 1,538) | ÷ | 18,279) |
| Dec 31, 2007 | 22.92% | = | 100 | × | 3,499) | ÷ | 15,264) |
| Dec 31, 2006 | 10.43% | = | 100 | × | 2,348) | ÷ | 22,504) |
| Dec 31, 2005 | 11.22% | = | 100 | × | 2,358) | ÷ | 21,007) |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The net profit margin of Halliburton Co. from 2005 to 2018 exhibits significant volatility, characterized by periods of moderate stability, a severe collapse in profitability, and a subsequent return to positive earnings.
- Initial Stability and Peak Margin (2005–2007)
- During the initial period, the net profit margin fluctuated between 10.43% and 11.22% before spiking to a peak of 22.92% in 2007. This peak is notable because it occurred during a year when revenue decreased to 15,264 million US dollars, indicating a significant increase in the efficiency of converting revenue into net income during that specific fiscal year.
- Moderate Fluctuations and Revenue Growth (2008–2014)
- From 2008 to 2014, a general trend of revenue expansion was observed, with revenue reaching a maximum of 32,870 million US dollars in 2014. Despite this growth, the net profit margin remained volatile, oscillating between a low of 7.23% in 2013 and a high of 11.43% in 2011. This suggests that the company struggled to maintain consistent margin expansion despite scaling its top-line revenue.
- Critical Downturn and Negative Margins (2015–2017)
- A period of severe financial distress began in 2015, marked by a shift to negative net profit margins. The decline peaked in 2016, when the margin dropped to -36.27%, coinciding with a net loss of 5,763 million US dollars. Although the margin improved to -2.25% by 2017, the company remained unprofitable for three consecutive years, reflecting a period of significant operational or market-driven challenges.
- Profitability Recovery (2018)
- By the end of 2018, a recovery trend is evident. The net profit margin returned to positive territory at 6.90%, supported by a recovery in net income to 1,656 million US dollars and a revenue increase to 23,995 million US dollars. While this represents a return to profitability, the margin remains below the historical averages seen between 2005 and 2014.
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Comparison to Competitors
Halliburton Co., net profit margin, long-term trends, comparison to competitors
| Halliburton Co. | SLB N.V. | |
|---|---|---|
| Dec 31, 2018 | 6.90% | 6.52% |
| Dec 31, 2017 | -2.25% | -4.94% |
| Dec 31, 2016 | -36.27% | -6.07% |
| Dec 31, 2015 | -2.84% | 5.84% |
| Dec 31, 2014 | 10.65% | 11.19% |
| Dec 31, 2013 | 7.23% | 14.87% |
| Dec 31, 2012 | 9.24% | 13.03% |
| Dec 31, 2011 | 11.43% | 12.64% |
| Dec 31, 2010 | 10.21% | 15.55% |
| Dec 31, 2009 | 7.80% | 13.80% |
| Dec 31, 2008 | 8.41% | 20.01% |
| Dec 31, 2007 | 22.92% | 22.24% |
| Dec 31, 2006 | 10.43% | 19.29% |
| Dec 31, 2005 | 11.22% | 15.42% |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Halliburton Co., net profit margin, long-term trends, comparison to industry (energy)
| Halliburton Co. | Energy | |
|---|---|---|
| Dec 31, 2018 | 6.90% | 8.68% |
| Dec 31, 2017 | -2.25% | 6.15% |
| Dec 31, 2016 | -36.27% | 0.54% |
| Dec 31, 2015 | -2.84% | 4.04% |
| Dec 31, 2014 | 10.65% | 9.21% |
| Dec 31, 2013 | 7.23% | 9.44% |
| Dec 31, 2012 | 9.24% | 10.84% |
| Dec 31, 2011 | 11.43% | 8.58% |
| Dec 31, 2010 | 10.21% | 8.29% |
| Dec 31, 2009 | 7.80% | 5.89% |
| Dec 31, 2008 | 8.41% | 5.80% |
| Dec 31, 2007 | 22.92% | 9.37% |
| Dec 31, 2006 | 10.43% | 9.82% |
| Dec 31, 2005 | 11.22% | 8.84% |
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), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).