Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Halliburton Co., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a downward trajectory from March 2015 through December 2016, declining steadily from 16.84% to a low of 5.32%. Beginning in March 2017, the margin demonstrated a consistent recovery trend, climbing gradually to approximately 13.14% by September 2018 before slightly decreasing to 12.44% at the end of 2018.
- Operating Profit Margin
- Operating profit margin followed a similar pattern, starting at 15.51% in March 2015 then decreasing sharply to deeply negative levels by December 2016, hitting a trough of -42.66%. From early 2017 onward, there was a significant improvement, moving back into positive territory and reaching 10.28% by the last reported quarter in 2018. This suggests operational challenges peaked in late 2016 with a robust recovery phase thereafter.
- Net Profit Margin
- The net profit margin also declined from 10.65% in March 2015 down to -36.27% by December 2016, mirroring the operating margin decline but with overall lower margins. Improvement began in 2017, though the trend was less smooth, with fluctuating negative and positive values, eventually achieving a marked recovery up to 6.90% by the last quarter of 2018. This pattern indicates recovery in profitability but with some volatility.
- Return on Equity (ROE)
- ROE initially decreased dramatically from 21.52% in March 2015, reaching severe negative values as low as -61.25% by September 2016 and remaining significantly negative through December 2016. The indicator showed gradual improvement starting in 2017, with fluctuations around zero before rising sharply to 17.39% at the end of the reported period in 2018. This suggests that equity holders experienced significant losses mid-period but returned to positive returns in the latest quarters.
- Return on Assets (ROA)
- The ROA experienced a decline from 10.86% in the first quarter of 2015 to -21.34% by December 2016. Following this low point, returns modestly improved with some variation between negative and slightly positive values over 2017 and early 2018. By the end of 2018, ROA exhibited a notable increase, reaching 6.37%, indicating enhanced asset utilization efficiency after a prolonged period of decline.
Return on Sales
Return on Investment
Gross Profit Margin
Halliburton Co., gross profit margin 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) | ||||||||||||||||||||||||||
| Gross profit | 667) | 788) | 854) | 677) | 835) | 689) | 483) | 258) | 317) | 171) | 103) | 273) | 526) | 543) | 686) | 765) | 1,499) | 1,708) | 1,283) | 1,045) | ||||||
| Revenue | 5,936) | 6,172) | 6,147) | 5,740) | 5,940) | 5,444) | 4,957) | 4,279) | 4,021) | 3,833) | 3,835) | 4,198) | 5,082) | 5,582) | 5,919) | 7,050) | 8,770) | 8,701) | 8,051) | 7,348) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | 12.44% | 13.14% | 13.13% | 12.16% | 10.98% | 9.34% | 7.19% | 5.32% | 5.44% | 6.33% | 7.73% | 9.76% | 10.66% | 12.79% | 15.30% | 16.13% | 16.84% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profitQ4 2018
+ Gross profitQ3 2018
+ Gross profitQ2 2018
+ Gross profitQ1 2018)
÷ (RevenueQ4 2018
+ RevenueQ3 2018
+ RevenueQ2 2018
+ RevenueQ1 2018)
= 100 × (667 + 788 + 854 + 677)
÷ (5,936 + 6,172 + 6,147 + 5,740)
= 12.44%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit demonstrates a distinct downward trend beginning in early 2014, with values peaking at 1708 million US$ in September 2014 before declining sharply throughout 2015 and 2016, reaching a low of 103 million US$ in June 2016. From this nadir, a gradual recovery is observed, with gross profit improving steadily from late 2016 through 2018, peaking again at 854 million US$ in June 2018 but then decreasing slightly towards the end of 2018.
- Revenue
- Revenue follows a similar pattern to gross profit, initially rising to a high of 8770 million US$ at the end of 2014 before entering a prolonged decline through to mid-2016, bottoming at 3833 million US$ in September 2016. After this period, revenue shows a gradual and consistent recovery, increasing to a maximum of 6172 million US$ in September 2018 and slightly declining in the final quarter of 2018.
- Gross Profit Margin
- The gross profit margin is only partially available but shows a downward trend from March 2015 to December 2016, declining from 16.84% to a low of 5.32%. Starting in early 2017, the margin exhibits an upward trajectory, increasing steadily through 2018 and reaching a peak of 13.14% in September 2018 before a minor decrease at the end of the year.
- Overall Analysis
- The data indicates that the company experienced a challenging period between late 2014 and mid-2016, with significant reductions in both revenue and gross profit, as well as margin compression. Following this period, the company appears to have implemented measures leading to recovery, as evidenced by the gradual improvement in financial performance indicators across 2017 and 2018. The correlation between revenue and gross profit trends suggests operational factors impacting overall profitability, while the improvement in gross profit margin in the latter periods points to better cost control or pricing strategies.
Operating Profit Margin
Halliburton Co., operating profit margin 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) | ||||||||||||||||||||||||||
| Operating income (loss) | 608) | 716) | 789) | 354) | 379) | 634) | 146) | 203) | 53) | 128) | (3,880) | (3,079) | 86) | 43) | 254) | (548) | 1,299) | 1,634) | 1,194) | 970) | ||||||
| Revenue | 5,936) | 6,172) | 6,147) | 5,740) | 5,940) | 5,444) | 4,957) | 4,279) | 4,021) | 3,833) | 3,835) | 4,198) | 5,082) | 5,582) | 5,919) | 7,050) | 8,770) | 8,701) | 8,051) | 7,348) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | 10.28% | 9.33% | 9.26% | 6.85% | 6.61% | 5.54% | 3.10% | -21.89% | -42.66% | -39.80% | -36.53% | -12.97% | -0.70% | 3.84% | 8.67% | 10.99% | 15.51% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating income (loss)Q4 2018
+ Operating income (loss)Q3 2018
+ Operating income (loss)Q2 2018
+ Operating income (loss)Q1 2018)
÷ (RevenueQ4 2018
+ RevenueQ3 2018
+ RevenueQ2 2018
+ RevenueQ1 2018)
= 100 × (608 + 716 + 789 + 354)
÷ (5,936 + 6,172 + 6,147 + 5,740)
= 10.28%
2 Click competitor name to see calculations.
- Operating Income (Loss) Trends
- Operating income exhibited considerable volatility over the observed quarters. Initially, it demonstrated a positive and increasing trajectory during 2014, peaking notably in the third quarter at 1,634 million US dollars. However, starting in the first quarter of 2015, there was a sharp contraction with operating income turning negative, reaching a significant low of -3,880 million US dollars in the second quarter of 2016. Post this trough, the operating income started showing recovery, returning to positive values by early 2017 and continuing a generally upward trend through 2018, maintaining gains between approximately 350 and 790 million US dollars.
- Revenue Patterns
- Revenue followed a declining pattern beginning in late 2014 through mid-2016. Initially peaking at 8,770 million US dollars at the fourth quarter of 2014, revenue then systematically decreased, bottoming out near 3,833 million US dollars in the third quarter of 2016. From late 2016 onward, revenue showed a gradual recovery trend, rising back towards the 6,000 million US dollar mark by the end of 2018, although it did not return to levels seen during the 2014 peak.
- Operating Profit Margin Dynamics
- The operating profit margin data, available starting in late 2014, reflected the trends seen in operating income and revenue. Margins began at a healthy 15.51% in the third quarter of 2014 but declined steadily into negative territory starting in early 2015, reaching a nadir of nearly -43% in the fourth quarter of 2016. This corresponds temporally with the period of the most severe revenue and operating income declines. Afterward, margins improved markedly, returning to positive territory around the first quarter of 2017 and climbing consistently through 2018 to surpass 10%, suggesting improved operational efficiency or cost management relative to revenue during that recovery phase.
- Overall Insights
- The data reveals a period of significant financial challenge beginning in 2015, with sharp declines in both revenue and profitability, likely indicating adverse market conditions or operational difficulties. Recovery efforts appear to have taken effect starting in 2017, with both revenue and profitability metrics showing improvement, although revenue did not fully return to earlier peak levels within the period observed. The rebound in operating profit margin to over 10% by the end of 2018 points to a restoration of profitability and potentially stronger cost controls or improved pricing power near the conclusion of the data timeline.
Net Profit Margin
Halliburton Co., net profit margin 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) | ||||||||||||||||||||||||||
| Net income (loss) attributable to company | 664) | 435) | 511) | 46) | (824) | 365) | 28) | (32) | (149) | 6) | (3,208) | (2,412) | (28) | (54) | 54) | (643) | 901) | 1,203) | 774) | 622) | ||||||
| Revenue | 5,936) | 6,172) | 6,147) | 5,740) | 5,940) | 5,444) | 4,957) | 4,279) | 4,021) | 3,833) | 3,835) | 4,198) | 5,082) | 5,582) | 5,919) | 7,050) | 8,770) | 8,701) | 8,051) | 7,348) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | 6.90% | 0.70% | 0.42% | -1.74% | -2.25% | 1.13% | -0.86% | -21.19% | -36.27% | -33.29% | -30.50% | -11.74% | -2.84% | 0.94% | 4.98% | 6.86% | 10.65% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net income (loss) attributable to companyQ4 2018
+ Net income (loss) attributable to companyQ3 2018
+ Net income (loss) attributable to companyQ2 2018
+ Net income (loss) attributable to companyQ1 2018)
÷ (RevenueQ4 2018
+ RevenueQ3 2018
+ RevenueQ2 2018
+ RevenueQ1 2018)
= 100 × (664 + 435 + 511 + 46)
÷ (5,936 + 6,172 + 6,147 + 5,740)
= 6.90%
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income exhibits significant volatility over the reported periods. Starting with positive results in 2014, net income peaks at 1,203 million US dollars in September 2014, followed by a decline towards the end of the year. The first half of 2015 sees diminishing profits, turning into losses by the third quarter and continuing into 2016 with substantial negative values, reaching a low of -3,208 million US dollars in June 2016. Subsequently, the company shows a gradual recovery with fluctuations in net income, posting small profits and losses through 2017. By 2018, net income returns to positive figures, achieving incremental gains, though still below the levels seen in early 2014.
- Revenue Pattern
- Revenue starts at a high point of 7,348 million US dollars in the first quarter of 2014, increasing steadily to a peak of 8,770 million US dollars in the fourth quarter of 2014. After this peak, a downward trend is observed, with revenues declining to a low of 3,833 million US dollars in the third quarter of 2016. The period from late 2016 through 2018 shows a moderate recovery, with revenues rising gradually to around 6,000 million US dollars by the end of 2018. Despite this improvement, revenue levels remain below the peak values recorded in 2014.
- Net Profit Margin Analysis
- The net profit margin reflects the fluctuations observed in net income relative to revenue. The margin peaks in the third quarter of 2014 at over 10%, then contracts steadily through 2015 into significantly negative territory in 2016, reaching margins as low as -36.27% in the third quarter of 2016. Margins improve slightly but remain negative or near zero for most of 2017. In 2018, there is a marked recovery with positive margins re-emerging, culminating in a 6.9% margin at the year-end quarter. This suggests an improving operational efficiency and profitability stance towards the end of the reporting period.
- Overall Financial Performance
- The company experienced strong financial performance in 2014, which sharply deteriorated during 2015 and 2016, marked by steep declines in net income and revenue, coupled with negative profit margins. The period from 2017 onward indicates a gradual recovery phase, with improving revenue and a return to profitability by the end of 2018. The data suggests the company faced significant operational and market challenges mid-cycle but took steps toward stabilization and recovery in subsequent years.
Return on Equity (ROE)
Halliburton Co., ROE 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) | ||||||||||||||||||||||||||
| Net income (loss) attributable to company | 664) | 435) | 511) | 46) | (824) | 365) | 28) | (32) | (149) | 6) | (3,208) | (2,412) | (28) | (54) | 54) | (643) | 901) | 1,203) | 774) | 622) | ||||||
| Company shareholders’ equity | 9,522) | 8,998) | 8,823) | 8,365) | 8,322) | 9,217) | 8,917) | 8,951) | 9,409) | 9,682) | 9,734) | 13,015) | 15,462) | 15,448) | 15,685) | 15,591) | 16,267) | 15,491) | 14,562) | 13,725) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | 17.39% | 1.87% | 1.11% | -4.60% | -5.56% | 2.30% | -1.65% | -37.79% | -61.25% | -58.27% | -58.58% | -18.75% | -4.34% | 1.67% | 9.66% | 14.34% | 21.52% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income (loss) attributable to companyQ4 2018
+ Net income (loss) attributable to companyQ3 2018
+ Net income (loss) attributable to companyQ2 2018
+ Net income (loss) attributable to companyQ1 2018)
÷ Company shareholders’ equity
= 100 × (664 + 435 + 511 + 46)
÷ 9,522 = 17.39%
2 Click competitor name to see calculations.
The net income attributable to the company exhibited significant fluctuations over the examined periods. Initially, positive earnings were recorded through 2014, peaking in the third quarter at 1,203 million US dollars. However, from early 2015 onward, the company experienced notable volatility, with net losses in multiple quarters, including a substantial loss of -2,412 million US dollars in the first quarter of 2016. Subsequent quarters showed a mix of minor profits and losses, with net income generally remaining low until a more consistent recovery began around 2017, culminating in positive earnings again in 2018, reaching 664 million US dollars in the final quarter reported.
Shareholders’ equity followed a declining trend over the same period. Equity increased steadily throughout 2014 but began to contract starting in 2015. From a high of approximately 16,267 million US dollars at the end of 2014, it decreased to a low near 8,322 million US dollars by late 2017. Although slight improvements were observed toward the end of 2017 and through 2018, equity remained below earlier levels by the close of the reported period.
The return on equity (ROE) presented a variable pattern, reflecting the swings in net income and equity. Initially, ROE was robust during 2014, reaching values above 20% in one quarter. Subsequently, a sharp decline occurred, with negative ROE percentages dominating between 2015 and 2017, including extremely negative values indicating significant losses relative to equity. Improvement became evident in late 2017 and throughout 2018, with ROE returning to positive territory, although generally at modest levels compared to the earlier high-performance periods.
- Key observations:
- 1. The company faced financial instability starting in 2015, demonstrated by pronounced net losses and declining equity.
- 2. Net income volatility was pronounced, with occasional recovery phases between losses, especially noticeable in 2017 and 2018.
- 3. Shareholders’ equity experienced a substantial reduction from 2015 through 2017, reflecting cumulative losses and possibly other equity adjustments.
- 4. The return on equity mirrored the underlying income trends, showing strong performance in 2014, deterioration in subsequent years, and gradual improvement in 2018.
- 5. The overall pattern suggests a challenging period for the company mid-cycle, followed by signs of operational recovery near the end of the time frame.
Return on Assets (ROA)
Halliburton Co., ROA 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) | ||||||||||||||||||||||||||
| Net income (loss) attributable to company | 664) | 435) | 511) | 46) | (824) | 365) | 28) | (32) | (149) | 6) | (3,208) | (2,412) | (28) | (54) | 54) | (643) | 901) | 1,203) | 774) | 622) | ||||||
| Total assets | 25,982) | 25,751) | 25,765) | 25,191) | 25,085) | 25,790) | 25,325) | 24,885) | 27,000) | 26,755) | 27,737) | 33,932) | 36,942) | 30,248) | 30,606) | 30,587) | 32,240) | 31,583) | 30,484) | 29,256) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | 6.37% | 0.65% | 0.38% | -1.53% | -1.85% | 0.82% | -0.58% | -13.59% | -21.34% | -21.09% | -20.56% | -7.19% | -1.82% | 0.85% | 4.95% | 7.31% | 10.86% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income (loss) attributable to companyQ4 2018
+ Net income (loss) attributable to companyQ3 2018
+ Net income (loss) attributable to companyQ2 2018
+ Net income (loss) attributable to companyQ1 2018)
÷ Total assets
= 100 × (664 + 435 + 511 + 46)
÷ 25,982 = 6.37%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in profitability, asset base, and return on assets (ROA) over the observed periods.
- Net Income (Loss) Attributable to Company
- The net income exhibits significant volatility throughout the periods. From early 2014 to the end of 2014, net income was generally positive, peaking at 1,203 million USD in the third quarter of 2014. However, starting in the first quarter of 2015, the company experienced a sharp turnaround to negative values, with a sizeable loss of -643 million USD. This was followed by a series of fluctuations around breakeven, including modest income and losses through late 2015 and 2016. Substantial negative results were evident in early to mid-2016, with the largest loss recorded at -3,208 million USD in the second quarter of 2016. From late 2016 through 2018, the net income gradually improved, with positive values becoming more frequent and increasing to 664 million USD by the last quarter of 2018.
- Total Assets
- Total assets displayed a generally stable movement with a peak in the fourth quarter of 2015 at 36,942 million USD. Prior to this peak, there was a relatively steady increase from approximately 29,256 million USD at the beginning of 2014 to this high point. Subsequent quarters saw a decrease in total assets, notably dropping to a low around 24,885 million USD in the first quarter of 2017. After this decline, the asset base showed mild recovery and stabilization, fluctuating around the 25,000 to 26,000 million USD range through 2018.
- Return on Assets (ROA)
- ROA values, available only for quarters starting after June 2014, mirror the net income volatility. Initially, ROA was relatively strong, peaking at 10.86% and maintaining positive levels through the end of 2014. Beginning in 2015, ROA turned negative and deteriorated significantly, reflecting the large losses experienced in that period. The lowest observed ROA corresponded to the second quarter of 2016 at -21.34%. Following this trough, a recovery trend commenced, as ROA moved gradually upwards, turning positive intermittently and ultimately improving to over 6% by the end of 2018. This recovery aligns with the observed improvements in net income during the same timeframe.
Overall, the data indicates that the company underwent a challenging financial period between 2015 and 2016, characterized by significant losses, decrease in asset base, and negative returns on assets. However, from 2017 onward, there is evidence of stabilization and recovery in profitability and asset utilization efficiency.