Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Halliburton Co., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
- Current Ratio
- The current ratio demonstrates fluctuations throughout the observed periods. Initially, the ratio decreased slightly from 2.73 at March 31, 2014, to 2.52 by September 30, 2014. It then increased to a peak of 4.03 at December 31, 2015, indicating a notable improvement in short-term liquidity during that quarter. Following this peak, the ratio generally declined, with minor variations, stabilizing near values around 2.2 to 2.3 towards the end of 2018. Overall, while there are periods of strength, the latter part of the timeline suggests a return to a moderate liquidity position.
- Quick Ratio
- The quick ratio trends largely mirrored those of the current ratio but remained consistently lower, reflecting the exclusion of inventory from current assets. After a modest decline from 1.71 in March 2014 to 1.41 in September 2015, the quick ratio sharply increased to 2.87 in December 2015. This spike signifies a substantial boost in liquid assets available to meet immediate liabilities at that time. Post-peak, the quick ratio showed a gradual decrease, stabilizing in the range of approximately 1.5 by the end of 2018. This suggests a more conservative liquidity stance with respect to highly liquid assets during the later periods.
- Cash Ratio
- The cash ratio exhibits greater volatility compared to the other liquidity ratios. Starting at 0.43 in March 2014, the ratio fluctuated moderately until a remarkable surge to 1.88 in December 2015, coinciding with increases in the other liquidity metrics. This notable rise indicates a strong cash position relative to current liabilities during that quarter. Afterward, the cash ratio decreased and stabilized around 0.4 to 0.5 towards the end of 2018, implying a moderate availability of cash to cover short-term obligations. The period between early 2016 to early 2017 also shows elevated cash ratios compared to the beginning and end of the dataset, reflecting intermittent liquidity improvements.
Current Ratio
Halliburton Co., current ratio calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Current assets | 11,151) | 11,436) | 11,436) | 11,035) | 10,777) | 10,144) | 10,260) | 9,828) | 11,677) | 11,760) | 12,580) | 19,105) | 21,609) | 14,919) | 15,224) | 13,825) | 15,068) | 14,847) | 14,165) | 13,486) | ||||||
| Current liabilities | 4,802) | 4,953) | 5,107) | 4,969) | 4,862) | 4,601) | 4,068) | 3,842) | 4,023) | 3,631) | 4,478) | 7,412) | 5,359) | 5,703) | 5,005) | 5,018) | 5,883) | 5,889) | 5,369) | 4,932) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Current ratio1 | 2.32 | 2.31 | 2.24 | 2.22 | 2.22 | 2.20 | 2.52 | 2.56 | 2.90 | 3.24 | 2.81 | 2.58 | 4.03 | 2.62 | 3.04 | 2.76 | 2.56 | 2.52 | 2.64 | 2.73 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||
| Schlumberger Ltd. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q4 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,151 ÷ 4,802 = 2.32
2 Click competitor name to see calculations.
The analysis of the quarterly financial data over the five-year period reveals several notable trends regarding the company's liquidity as reflected in current assets, current liabilities, and the current ratio.
- Current Assets
- The current assets have exhibited fluctuation with periods of both growth and decline. Initially, there was a gradual increase from approximately 13,486 million USD in the first quarter of 2014 to a peak at the end of 2015 reaching over 21,600 million USD. Following this peak, a significant reduction occurred during 2016, reaching a low of around 11,760 million USD. From early 2017 to the end of 2018, current assets stabilized somewhat, maintaining a range roughly between 9,800 million USD and 11,400 million USD.
- Current Liabilities
- Current liabilities demonstrated variability as well but without a consistent directional trend. They increased moderately from 4,932 million USD in early 2014 to approximately 5,800 million USD by the end of 2014. This was followed by fluctuations in 2015 and a notable spike in the first quarter of 2016 reaching 7,412 million USD. After this peak, liabilities decreased substantially in the next quarters of 2016 to around 3,600 million USD but then gradually rose again, ending 2018 near 4,800 million USD.
- Current Ratio
- The current ratio, which measures liquidity, showed considerable volatility. Early values in 2014 started high around 2.7 but declined towards the end of that year. There was a notable peak at the end of 2015 of approximately 4.03, indicating a substantial improvement in short-term liquidity. However, the ratio then decreased sharply in early 2016 to values around 2.5–2.9 and stabilized in the range of 2.2 to 2.3 throughout 2017 and 2018. This suggests relatively stable but lower liquidity in the later periods as compared to the peak at the end of 2015.
Overall, the liquidity profile showed periods of strengthening followed by contraction. The peak in current assets and current ratio at the end of 2015 was not sustained, as both metrics declined significantly in subsequent periods. Despite this, the current ratio remained above 2.0 in the latter years, indicating that the company maintained a liquidity cushion with current assets exceeding current liabilities by more than double. The fluctuations in liabilities and assets likely reflect changing operational or market conditions during the analyzed timeframe.
Quick Ratio
Halliburton Co., quick ratio calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and equivalents | 2,008) | 2,057) | 2,058) | 2,332) | 2,337) | 1,898) | 2,139) | 2,107) | 4,009) | 3,289) | 3,108) | 9,593) | 10,077) | 2,249) | 2,760) | 2,294) | 2,291) | 2,029) | 2,360) | 2,123) | ||||||
| Marketable securities | —) | —) | 414) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Receivables, net of allowances for bad debts | 5,234) | 5,526) | 5,403) | 5,255) | 5,036) | 4,852) | 4,385) | 4,008) | 3,922) | 4,360) | 4,725) | 4,983) | 5,317) | 5,791) | 5,633) | 6,419) | 7,564) | 7,555) | 6,781) | 6,314) | ||||||
| Total quick assets | 7,242) | 7,583) | 7,875) | 7,587) | 7,373) | 6,750) | 6,524) | 6,115) | 7,931) | 7,649) | 7,833) | 14,576) | 15,394) | 8,040) | 8,393) | 8,713) | 9,855) | 9,584) | 9,141) | 8,437) | ||||||
| Current liabilities | 4,802) | 4,953) | 5,107) | 4,969) | 4,862) | 4,601) | 4,068) | 3,842) | 4,023) | 3,631) | 4,478) | 7,412) | 5,359) | 5,703) | 5,005) | 5,018) | 5,883) | 5,889) | 5,369) | 4,932) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Quick ratio1 | 1.51 | 1.53 | 1.54 | 1.53 | 1.52 | 1.47 | 1.60 | 1.59 | 1.97 | 2.11 | 1.75 | 1.97 | 2.87 | 1.41 | 1.68 | 1.74 | 1.68 | 1.63 | 1.70 | 1.71 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||
| Schlumberger Ltd. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q4 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,242 ÷ 4,802 = 1.51
2 Click competitor name to see calculations.
Analysis of the quarterly financial data reveals several notable trends and fluctuations over the examined periods.
- Total Quick Assets
- The total quick assets show considerable variability throughout the periods. Starting at approximately 8.4 billion US dollars in March 2014, the amount remained relatively stable around the 8 to 9.8 billion range until December 2014. A slight decline occurred through the first three quarters of 2015, followed by a significant spike to nearly 15.4 billion US dollars in the last quarter of 2015. Subsequently, there was a marked decrease in early 2016 to around 7.6 to 7.8 billion, which continued to hover in the 6.1 to 7.9 billion range through 2017 and 2018. Overall, total quick assets exhibit a pattern of both peaks and troughs with a prominent peak observed at the end of 2015.
- Current Liabilities
- Current liabilities manifest a more consistent trend with moderate fluctuations. Beginning near 4.9 billion US dollars in early 2014, they incrementally increased to just over 5.8 billion by the third quarter of 2014. There was a reduction in liabilities in early 2015, followed by a slight rise and irregular movement through 2015 into 2016. The liabilities peaked at approximately 7.4 billion in the first quarter of 2016 before descending sharply to a range around 3.6 to 4.0 billion during the remainder of 2016. In 2017 and 2018, current liabilities gradually increased again but remained near or below 5.1 billion. The general observation is that liabilities experienced a peak early in 2016, then decreased and stabilized at a lower level.
- Quick Ratio
- The quick ratio, representing liquidity, generally fluctuated around the 1.5 to 1.7 range with notable deviations. It started at 1.71 in March 2014 and stayed relatively steady until an increase leading to an exceptional peak reaching 2.87 in the fourth quarter of 2015, coinciding with the spike in quick assets and a relative dip in current liabilities. Following this peak, the ratio decreased but remained above 1.5 through most of 2016 to 2018. This suggests that while liquidity improved dramatically at the end of 2015, it normalized to a moderate level afterward, indicating maintained but less volatile short-term financial strength.
In summary, the data highlights a significant surge in liquidity and quick assets at the end of 2015, accompanied by a peak in the quick ratio, followed by a correction and stabilization in subsequent periods. Current liabilities show a relatively smoother pattern with a notable peak at the start of 2016 before settling at lower levels. This cyclical behavior in financial metrics may reflect operational adjustments or market conditions affecting cash equivalents and liabilities over the analyzed quarters.
Cash Ratio
Halliburton Co., cash ratio calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Cash and equivalents | 2,008) | 2,057) | 2,058) | 2,332) | 2,337) | 1,898) | 2,139) | 2,107) | 4,009) | 3,289) | 3,108) | 9,593) | 10,077) | 2,249) | 2,760) | 2,294) | 2,291) | 2,029) | 2,360) | 2,123) | ||||||
| Marketable securities | —) | —) | 414) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Total cash assets | 2,008) | 2,057) | 2,472) | 2,332) | 2,337) | 1,898) | 2,139) | 2,107) | 4,009) | 3,289) | 3,108) | 9,593) | 10,077) | 2,249) | 2,760) | 2,294) | 2,291) | 2,029) | 2,360) | 2,123) | ||||||
| Current liabilities | 4,802) | 4,953) | 5,107) | 4,969) | 4,862) | 4,601) | 4,068) | 3,842) | 4,023) | 3,631) | 4,478) | 7,412) | 5,359) | 5,703) | 5,005) | 5,018) | 5,883) | 5,889) | 5,369) | 4,932) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||||
| Cash ratio1 | 0.42 | 0.42 | 0.48 | 0.47 | 0.48 | 0.41 | 0.53 | 0.55 | 1.00 | 0.91 | 0.69 | 1.29 | 1.88 | 0.39 | 0.55 | 0.46 | 0.39 | 0.34 | 0.44 | 0.43 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||
| Schlumberger Ltd. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Q4 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,008 ÷ 4,802 = 0.42
2 Click competitor name to see calculations.
- Total Cash Assets
- From March 2014 to December 2015, total cash assets fluctuated moderately, generally remaining between approximately 2,000 and 2,800 million US dollars, except for the significant spike in December 2015, reaching 10,077 million US dollars. Following this peak, there was a sharp decline by March 2016 to 9,593 million dollars and a notable drop to around 3,000-4,000 million dollars for the remainder of 2016. Subsequently, the cash levels decreased steadily throughout 2017 and into 2018, falling below 2,500 million US dollars and reaching a low near 2,000 million US dollars by December 2018.
- Current Liabilities
- Current liabilities displayed moderate volatility across the observed periods. Initially, from early 2014 through to late 2015, current liabilities ranged mostly between 4,900 and 5,900 million US dollars, peaking slightly at 5,889 million in September 2014 and declining to around 5,300 million by December 2015. In 2016, liabilities showed a notable increase, reaching a peak of 7,412 million US dollars in March before decreasing substantially to near 3,630 million by September 2016 and then rising again slightly towards the end of 2016. Throughout 2017 and 2018, current liabilities gradually increased from about 3,800 million to a range around 5,000 million US dollars by late 2018.
- Cash Ratio
- The cash ratio exhibited significant variation over the timeframe. It predominantly remained below 1.0 until late 2015, fluctuating within the range of approximately 0.34 to 0.55, indicating lower immediate liquidity relative to current liabilities. A pronounced spike occurred in December 2015, with the cash ratio soaring dramatically to 1.88, coinciding with the surge in total cash assets. Post this peak, the ratio declined sharply throughout 2016, stabilizing just below or around 1.0 during several quarters. From 2017 onward, the cash ratio consistently remained below 0.6, generally varying between 0.41 and 0.55, signaling a reduction in liquidity relative to current liabilities compared to the spike in late 2015.
- Overall Observations
- The data reveals a significant liquidity event near the end of 2015, marked by a strong increase in cash reserves that outpaced current liabilities, reflected in a high cash ratio. However, this liquidity level was not sustained, as cash assets decreased substantially by early 2016, and the cash ratio normalized to lower levels thereafter. Throughout the later periods, the company held a relatively lower cash buffer when measured against current liabilities, which may suggest more conservative cash holdings or increased short-term obligations. The fluctuations in current liabilities and cash assets suggest active management of working capital and possibly varying operational or market conditions affecting cash flow needs over time.