Stock Analysis on Net

Halliburton Co. (NYSE:HAL)

$22.49

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

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Long-term Activity Ratios (Summary)

Halliburton Co., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net fixed asset turnover
Total asset turnover
Equity turnover

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).


Net Fixed Asset Turnover
The net fixed asset turnover ratio showed a declining trend from 2.63 in 2014 to 1.86 in 2016, indicating a reduction in efficiency in using fixed assets to generate sales. However, this ratio improved in the subsequent years, increasing to 2.42 in 2017 and further to 2.68 in 2018, surpassing the initial 2014 level. This suggests a recovery and enhanced utilization of fixed assets over the latter period.
Total Asset Turnover
The total asset turnover ratio experienced a significant decline from 1.02 in 2014 to 0.59 in 2016, revealing a diminishing efficiency in utilizing total assets to generate revenue. Although there was some recovery in 2017 and 2018, with ratios rising to 0.82 and 0.92 respectively, the levels remained below that of 2014. This indicates an overall reduced asset efficiency, albeit with signs of improvement towards the end of the period.
Equity Turnover
The equity turnover ratio decreased from 2.02 in 2014 to 1.53 in 2015, representing a reduction in the generation of sales relative to shareholders' equity. There was a moderate rebound in 2016 to 1.69, followed by a significant increase to 2.48 in 2017 and a slight further rise to 2.52 in 2018. The upward trend in the last two years reflects an enhanced ability to generate sales from equity, indicating improved equity utilization.

Net Fixed Asset Turnover

Halliburton Co., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue
Property, plant, and equipment, net of accumulated depreciation
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, 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
Net fixed asset turnover = Revenue ÷ Property, plant, and equipment, net of accumulated depreciation
= ÷ =

2 Click competitor name to see calculations.


Revenue Trends
The revenue exhibited a significant decline from 2014 to 2016, dropping from 32,870 million US dollars in 2014 to 15,887 million US dollars in 2016. This represents more than a 50% decrease over two years. Following 2016, revenue demonstrated a recovery trend, increasing to 20,620 million in 2017 and further to 23,995 million in 2018, though it remained below the 2014 peak.
Property, Plant, and Equipment (Net of Accumulated Depreciation)
The net value of property, plant, and equipment showed a declining trajectory between 2014 and 2017. It decreased steadily from 12,475 million US dollars in 2014 to 8,521 million in 2017. In 2018, there was a modest increase to 8,961 million. Overall, the asset base contracted significantly during this period, indicating possible asset sales, write-downs, or reduced capital expenditures.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio, which measures revenue generated per unit of net fixed assets, diminished from 2.63 in 2014 to a low of 1.86 in 2016. This decline corresponded with reductions in both revenue and asset base, with revenue contracting at a faster pace. In 2017, the ratio rebounded to 2.42 and further improved to 2.68 in 2018, surpassing the 2014 level. This suggests improved efficiency in utilizing fixed assets to generate revenue during the latter years analyzed.
Overall Analysis
The observed trends indicate a period of financial stress or restructuring until 2016, characterized by sharply lower revenue and a shrinking fixed asset base. The subsequent recovery in revenue alongside improvements in asset turnover ratio implies a strategic focus on enhancing operational efficiency and possibly optimizing asset usage. Despite these improvements, revenue levels in 2018 remained below the 2014 benchmark, pointing to an incomplete recovery or changes in market conditions.

Total Asset Turnover

Halliburton Co., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, 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
Total asset turnover = Revenue ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Revenue
The revenue exhibits a declining trend between 2014 and 2016, decreasing from approximately 32,870 million US dollars to 15,887 million US dollars. Following this period, revenue shows a recovery trend, increasing to 20,620 million US dollars in 2017 and further to 23,995 million US dollars in 2018.
Total assets
Total assets initially increased from 32,240 million US dollars in 2014 to 36,942 million US dollars in 2015. After this peak, total assets experienced a steady decline over the next three years, reaching 25,982 million US dollars by 2018.
Total asset turnover
The total asset turnover ratio, which measures the efficiency of asset use in generating revenue, decreased significantly from 1.02 in 2014 to 0.59 in 2016. This indicates a reduced efficiency in asset utilization during this period. However, the ratio improved subsequently, rising to 0.82 in 2017 and further to 0.92 in 2018, suggesting a recovery in operational efficiency.
Overall insights
Between 2014 and 2016, the company experienced a notable contraction in revenue accompanied by declining asset efficiency and a reduction in total assets after an initial increase. From 2017 onward, signs of stabilization and recovery are evident, with incremental gains in revenue and improvements in asset turnover. Despite this recovery, total assets remain below 2014 and 2015 levels, indicating possible asset base rationalization or divestment.

Equity Turnover

Halliburton Co., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Revenue
Company shareholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, 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
Equity turnover = Revenue ÷ Company shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Revenue
Revenue exhibited a significant decline from 2014 to 2016, decreasing from 32,870 million US dollars in 2014 to 15,887 million US dollars in 2016. This represents a reduction of more than 50% over the two-year period. From 2016 onwards, revenue showed a recovery trend, increasing to 20,620 million US dollars in 2017 and further to 23,995 million US dollars in 2018. Although the revenue did not return to the initial 2014 level by 2018, the upward trend in the last two years indicates a gradual improvement.
Company shareholders’ equity
Shareholders’ equity declined steadily from 16,267 million US dollars in 2014 to 9,409 million US dollars in 2016, mirroring the significant decrease observed in revenue. After continuing to fall slightly to 8,322 million US dollars in 2017, equity increased modestly to 9,522 million US dollars in 2018. Despite this recent uptick, equity remained below the levels observed at the start of the period, reflecting ongoing challenges to the company’s net asset base during the period analyzed.
Equity turnover
The equity turnover ratio started at 2.02 in 2014 and declined to 1.53 in 2015, indicating less efficient use of shareholders’ equity to generate revenue. However, it increased in 2016 to 1.69 and rose sharply in subsequent years to 2.48 in 2017 and 2.52 in 2018. The rising equity turnover ratio in the last two years suggests improved operational efficiency and better utilization of equity to produce revenue, consistent with the recovery seen in revenue figures.