Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Halliburton Co., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Halliburton Co. debt to equity ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Halliburton Co. debt to capital ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Halliburton Co. debt to assets ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Halliburton Co. financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Halliburton Co. interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Halliburton Co. fixed charge coverage ratio improved from 2016 to 2017 and from 2017 to 2018. |
Debt to Equity
Halliburton Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and current maturities of long-term debt | 36) | 512) | 170) | 659) | 14) | |
| Long-term debt, excluding current maturities | 10,421) | 10,430) | 12,214) | 14,687) | 7,840) | |
| Total debt | 10,457) | 10,942) | 12,384) | 15,346) | 7,854) | |
| Company shareholders’ equity | 9,522) | 8,322) | 9,409) | 15,462) | 16,267) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.10 | 1.31 | 1.32 | 0.99 | 0.48 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2018 Calculation
Debt to equity = Total debt ÷ Company shareholders’ equity
= 10,457 ÷ 9,522 = 1.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Halliburton Co. debt to equity ratio improved from 2016 to 2017 and from 2017 to 2018. |
Debt to Capital
Halliburton Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and current maturities of long-term debt | 36) | 512) | 170) | 659) | 14) | |
| Long-term debt, excluding current maturities | 10,421) | 10,430) | 12,214) | 14,687) | 7,840) | |
| Total debt | 10,457) | 10,942) | 12,384) | 15,346) | 7,854) | |
| Company shareholders’ equity | 9,522) | 8,322) | 9,409) | 15,462) | 16,267) | |
| Total capital | 19,979) | 19,264) | 21,793) | 30,808) | 24,121) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.52 | 0.57 | 0.57 | 0.50 | 0.33 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 10,457 ÷ 19,979 = 0.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Halliburton Co. debt to capital ratio improved from 2016 to 2017 and from 2017 to 2018. |
Debt to Assets
Halliburton Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings and current maturities of long-term debt | 36) | 512) | 170) | 659) | 14) | |
| Long-term debt, excluding current maturities | 10,421) | 10,430) | 12,214) | 14,687) | 7,840) | |
| Total debt | 10,457) | 10,942) | 12,384) | 15,346) | 7,854) | |
| Total assets | 25,982) | 25,085) | 27,000) | 36,942) | 32,240) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.40 | 0.44 | 0.46 | 0.42 | 0.24 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 10,457 ÷ 25,982 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Halliburton Co. debt to assets ratio improved from 2016 to 2017 and from 2017 to 2018. |
Financial Leverage
Halliburton Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2018 Calculation
Financial leverage = Total assets ÷ Company shareholders’ equity
= 25,982 ÷ 9,522 = 2.73
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Halliburton Co. financial leverage ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018. |
Interest Coverage
Halliburton Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to company | 1,656) | (463) | (5,763) | (671) | 3,500) | |
| Add: Net income attributable to noncontrolling interest | 1) | (5) | (6) | 4) | 1) | |
| Less: Income (loss) from discontinued operations, net | —) | (19) | (2) | (5) | 64) | |
| Add: Income tax expense | 157) | 1,131) | (1,858) | (274) | 1,275) | |
| Add: Interest expense | 598) | 705) | 698) | 463) | 396) | |
| Earnings before interest and tax (EBIT) | 2,412) | 1,387) | (6,927) | (473) | 5,108) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.03 | 1.97 | -9.92 | -1.02 | 12.90 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,412 ÷ 598 = 4.03
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Halliburton Co. interest coverage ratio improved from 2016 to 2017 and from 2017 to 2018. |
Fixed Charge Coverage
Halliburton Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to company | 1,656) | (463) | (5,763) | (671) | 3,500) | |
| Add: Net income attributable to noncontrolling interest | 1) | (5) | (6) | 4) | 1) | |
| Less: Income (loss) from discontinued operations, net | —) | (19) | (2) | (5) | 64) | |
| Add: Income tax expense | 157) | 1,131) | (1,858) | (274) | 1,275) | |
| Add: Interest expense | 598) | 705) | 698) | 463) | 396) | |
| Earnings before interest and tax (EBIT) | 2,412) | 1,387) | (6,927) | (473) | 5,108) | |
| Add: Rentals on operating leases, net of sublease rentals | 680) | 574) | 587) | 875) | 1,000) | |
| Earnings before fixed charges and tax | 3,092) | 1,961) | (6,340) | 402) | 6,108) | |
| Interest expense | 598) | 705) | 698) | 463) | 396) | |
| Rentals on operating leases, net of sublease rentals | 680) | 574) | 587) | 875) | 1,000) | |
| Fixed charges | 1,278) | 1,279) | 1,285) | 1,338) | 1,396) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.42 | 1.53 | -4.93 | 0.30 | 4.38 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
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).
1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,092 ÷ 1,278 = 2.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Halliburton Co. fixed charge coverage ratio improved from 2016 to 2017 and from 2017 to 2018. |