Halliburton Co. (NYSE:HAL)

Revenue Trend

The revenue figures demonstrate significant volatility over the examined period. Starting from approximately $21.0 billion in 2005, revenue peaked at $32.9 billion in 2014, marking a substantial growth over nearly a decade. However, notable fluctuations appear, including sharp declines in 2007 and 2009, as well as a pronounced drop in 2015 to $23.6 billion and further decreases into 2016. Toward the end of the period in 2018, revenue showed a recovery, reaching nearly $24.0 billion. Overall, the data reflect a cyclical pattern with periods of strong growth interspersed with declines.

Operating Income (Loss) Trend

Operating income exhibits a generally positive trend from 2005 through 2014, increasing from $2.7 billion to a peak of approximately $5.1 billion. This ascent was interrupted by a marked decline in 2015 and 2016, during which operating income turned negative, hitting losses of $165 million and $6.8 billion, respectively. The return to profitability in 2017 and 2018 is evident but the operating income recovers to more moderate levels of $1.4 billion and $2.5 billion. These fluctuations suggest operational challenges or extraordinary expenses impacting profitability in the mid-2010s.

Net Income (Loss) Attributable to Company

Net income attributable to the company follows a similar pattern to operating income. Growth is visible from 2005 through 2014, with an increase from $2.4 billion to a peak of $3.5 billion in 2014. Subsequently, net income declines sharply and turns negative in 2015 and 2016, recording losses of $671 million and $5.8 billion, respectively. The period ends with a modest recovery in 2017 and 2018, indicating a partial restoration of profitability. This trend parallels the operating income losses and suggests that the company's overall profitability was severely impacted during the mid-2010s downturn before showing signs of stabilization.

Summary of Financial Performance

The financial data reveals a cycle of robust growth leading up to 2014, followed by a pronounced financial downturn in 2015 and 2016 characterized by revenue declines and significant operating and net losses. The recovery phase from 2017 onwards points to improved operational efficiency or market conditions, although profitability remains below peak levels observed earlier in the period. This pattern highlights the company's exposure to market volatility or internal challenges specifically evident during the mid-2010s.

The analysis of the financial data over the given period reveals several key trends in the asset composition of the company.

Current Assets

Current assets exhibited notable fluctuations throughout the span analyzed. Starting at 9,327 million USD in 2005, there was a significant increase to 11,183 million USD in 2006, followed by a decline until 2008, reaching 7,411 million USD. From 2009 onwards, current assets generally trended upwards, peaking at 21,609 million USD in 2014. However, in subsequent years, a declining trend was observed, with current assets dropping to 11,677 million USD in 2016 and stabilizing between approximately 10,777 and 11,151 million USD in later years. This pattern suggests periods of both asset accumulation and consolidation, with the peak in 2014 indicating a potential strategic buildup of liquid or short-term assets before normalization.

Total Assets

Total assets demonstrated a generally upward trajectory from 2005 through 2015, increasing from 15,010 million USD to a peak of 36,942 million USD. The growth was relatively steady with occasional fluctuations, indicating expansion and possible investment activities. After 2015, total assets contracted notably, decreasing to 27,000 million USD in 2016 and further to 25,085 million USD in 2017 before a slight recovery to 25,982 million USD in 2018. This contraction phase may reflect asset disposals, depreciations, or strategic realignment of the asset base.

Relationship Between Current and Total Assets

Examining current assets as a component of total assets reveals varying proportions over the years. During the early years, current assets constituted a substantial but variable fraction of total assets, ranging roughly from 50% to over 60%. The peak in current assets in 2014 corresponded to a significant total asset level, indicating an overall increase in asset holdings. Post-2014, both current and total assets decreased, but current assets declined more sharply, leading to a lower proportion of current assets relative to total assets. These movements suggest shifts in asset structure, possibly reflecting changes in operational strategy, liquidity management, or asset utilization.

Current Liabilities

The current liabilities showed a fluctuating trend over the period. Starting at $4,437 million in 2005, they increased to $4,727 million in 2006, then dropped significantly to $2,411 million in 2007. From 2008 to 2010, current liabilities hovered around the $2,700 to $2,900 million range before rising sharply starting in 2011 to a peak of $5,883 million in 2014. After this peak, current liabilities declined to $4,023 million in 2015, before rising again to approximately $4,800 million by 2018. This pattern indicates periods of increased short-term obligations, particularly between 2011 and 2014.

Total Liabilities

Total liabilities generally increased over the period, rising from $8,493 million in 2005 to a high of $21,447 million in 2015. There was steady growth from 2005 to 2012, followed by a more pronounced increase from 2013 to 2015. Following the peak in 2015, total liabilities decreased substantially to $16,438 million by 2018. This trend suggests the company undertook significant borrowing or obligations up to 2015 and subsequently reduced its liabilities over the following years.

Short-term Notes Payable and Long-term Debt

This category remained relatively stable between 2005 and 2008, fluctuating between $2,600 million and $3,200 million. From 2009 onwards, debt levels increased sharply, more than doubling by 2015, reaching $15,346 million. After 2015, there was a gradual decline to approximately $10,457 million by 2018. The substantial increase in debt suggests significant financing activities or liabilities accrued in that period, while the decline after 2015 indicates active debt repayment or refinancing.

Company Shareholders’ Equity

Shareholders’ equity experienced growth from $6,372 million in 2005 to a peak of $16,267 million in 2014, reflecting increasing net asset value. However, from 2014 onwards, equity declined sharply to $9,409 million in 2016 and further decreased to $8,322 million in 2017, before partially recovering to $9,522 million by 2018. This downturn after 2014 could reflect net losses, asset write-downs, or dividend payments exceeding earnings, followed by some stabilization.

Operating Activities Cash Flow

The cash flows generated from operating activities show significant variability over the analyzed period. Starting at $701 million in 2005, there was a substantial increase in 2006 to $3,657 million, followed by a relatively high but fluctuating level in subsequent years. Notably, the cash flow peaked at $4,447 million in 2013 before experiencing a rollback in 2015 to $2,906 million and a sharp negative value of -$1,703 million in 2016, indicating operational challenges or increased cash outflows during that year. Recovery is observed in 2017 and 2018 with positive cash flows of $2,468 million and $3,157 million, respectively.

Investing Activities Cash Flow

Cash flows from investing activities consistently reflect cash outflows, indicating ongoing investment expenditures. After a positive cash inflow of $510 million in 2005, a shift to cash outflows occurs in 2006 and continues throughout the time frame, with the highest outflow in 2007 at -$3,648 million. The magnitude of outflows remains substantial in following years, with values generally between approximately -$710 million and -$3,688 million. This trend suggests sustained capital investment or asset acquisition activities.

Financing Activities Cash Flow

Financing activities cash flow is characterized by pronounced volatility. Initial outflows of -$720 million in 2005 deepen in the next two years, reaching -$1,552 million in 2007. In 2009, there is a marked shift to a positive inflow of $1,670 million, indicating financing inflows such as debt issuance or equity capital raised. This pattern alternates, with significant positive inflows in 2011 ($833 million) and an exceptional peak in 2015 reaching $7,081 million. Thereafter, the cash flows turn negative, including a steep outflow in 2016 of -$3,540 million, followed by continuing outflows up to 2018. These fluctuations indicate active management of the capital structure, involving periods of both raising and repaying capital or paying dividends.

Earnings per Share (Basic and Diluted)

Both basic and diluted earnings per share (EPS) exhibit a fluctuating pattern over the examined period. From 2005 through 2007, EPS increased, reaching a peak of 3.83 (basic) and 3.68 (diluted) in 2007. Following this, a decline is noticeable in 2008 and 2009, with values reaching the lowest points of 1.75 and 1.27 respectively, indicating reduced profitability. A recovery trend is evident from 2010 to 2014, where basic EPS attains a high of 4.13 in 2014. However, from 2015 onwards, there is a dramatic downturn, with EPS turning negative in 2015 (-0.79), steepening further to -6.69 in 2016, followed by continued negative or small positive results through 2018. The similarity between basic and diluted EPS indicates minimal dilution impact on the earnings per share.

Dividend per Share

The dividend per share shows a consistent upward trend over the period. Starting at $0.25 in 2005, it gradually increases almost every year, reaching $0.36 by 2008 and maintaining this level through 2012. Thereafter, dividends increase more substantially, reaching $0.53 in 2013 and continuing to rise to $0.72 by 2015. From 2015 through 2018, the dividend remains steady at $0.72 per share, indicating a strategic decision to maintain dividend payments despite fluctuations in earnings. This steadiness suggests a commitment to shareholder returns even during periods of low or negative earnings.