Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Halliburton Co., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Halliburton Co. inventory turnover ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Halliburton Co. receivables turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Halliburton Co. payables turnover ratio decreased from 2016 to 2017 and from 2017 to 2018. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Halliburton Co. working capital turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Halliburton Co. number of days of inventory outstanding improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Halliburton Co. number of days of receivables outstanding improved from 2016 to 2017 and from 2017 to 2018. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Halliburton Co. operating cycle improved from 2016 to 2017 and from 2017 to 2018. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Halliburton Co. number of days of payables outstanding increased from 2016 to 2017 and from 2017 to 2018. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Halliburton Co. cash conversion cycle improved from 2016 to 2017 and from 2017 to 2018. |
Inventory Turnover
Halliburton Co., inventory turnover 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) | ||||||
| Cost of services and product sales | 21,009) | 18,355) | 15,023) | 21,113) | 27,530) | |
| Inventories | 3,028) | 2,396) | 2,275) | 2,417) | 3,571) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 6.94 | 7.66 | 6.60 | 8.74 | 7.71 | |
| Benchmarks | ||||||
| Inventory 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
Inventory turnover = Cost of services and product sales ÷ Inventories
= 21,009 ÷ 3,028 = 6.94
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Halliburton Co. inventory turnover ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level. |
Receivables Turnover
Halliburton Co., receivables turnover 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) | ||||||
| Revenue | 23,995) | 20,620) | 15,887) | 23,633) | 32,870) | |
| Receivables, less allowances for bad debts | 5,234) | 5,036) | 3,922) | 5,317) | 7,564) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 4.58 | 4.09 | 4.05 | 4.44 | 4.35 | |
| Benchmarks | ||||||
| Receivables 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
Receivables turnover = Revenue ÷ Receivables, less allowances for bad debts
= 23,995 ÷ 5,234 = 4.58
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Halliburton Co. receivables turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Payables Turnover
Halliburton Co., payables turnover 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) | ||||||
| Cost of services and product sales | 21,009) | 18,355) | 15,023) | 21,113) | 27,530) | |
| Accounts payable | 3,018) | 2,554) | 1,764) | 2,019) | 2,814) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 6.96 | 7.19 | 8.52 | 10.46 | 9.78 | |
| Benchmarks | ||||||
| Payables 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
Payables turnover = Cost of services and product sales ÷ Accounts payable
= 21,009 ÷ 3,018 = 6.96
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Halliburton Co. payables turnover ratio decreased from 2016 to 2017 and from 2017 to 2018. |
Working Capital Turnover
Halliburton Co., working capital turnover 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) | ||||||
| Current assets | 11,151) | 10,777) | 11,677) | 21,609) | 15,068) | |
| Less: Current liabilities | 4,802) | 4,862) | 4,023) | 5,359) | 5,883) | |
| Working capital | 6,349) | 5,915) | 7,654) | 16,250) | 9,185) | |
| Revenue | 23,995) | 20,620) | 15,887) | 23,633) | 32,870) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 3.78 | 3.49 | 2.08 | 1.45 | 3.58 | |
| Benchmarks | ||||||
| Working Capital 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
Working capital turnover = Revenue ÷ Working capital
= 23,995 ÷ 6,349 = 3.78
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Halliburton Co. working capital turnover ratio improved from 2016 to 2017 and from 2017 to 2018. |
Average Inventory Processing Period
Halliburton Co., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 6.94 | 7.66 | 6.60 | 8.74 | 7.71 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 53 | 48 | 55 | 42 | 47 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.94 = 53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Halliburton Co. number of days of inventory outstanding improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level. |
Average Receivable Collection Period
Halliburton Co., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 4.58 | 4.09 | 4.05 | 4.44 | 4.35 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 80 | 89 | 90 | 82 | 84 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.58 = 80
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Halliburton Co. number of days of receivables outstanding improved from 2016 to 2017 and from 2017 to 2018. |
Operating Cycle
Halliburton Co., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 53 | 48 | 55 | 42 | 47 | |
| Average receivable collection period | 80 | 89 | 90 | 82 | 84 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 133 | 137 | 145 | 124 | 131 | |
| Benchmarks | ||||||
| Operating Cycle, 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
Operating cycle = Average inventory processing period + Average receivable collection period
= 53 + 80 = 133
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Halliburton Co. operating cycle improved from 2016 to 2017 and from 2017 to 2018. |
Average Payables Payment Period
Halliburton Co., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 6.96 | 7.19 | 8.52 | 10.46 | 9.78 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 52 | 51 | 43 | 35 | 37 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.96 = 52
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Halliburton Co. number of days of payables outstanding increased from 2016 to 2017 and from 2017 to 2018. |
Cash Conversion Cycle
Halliburton Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 53 | 48 | 55 | 42 | 47 | |
| Average receivable collection period | 80 | 89 | 90 | 82 | 84 | |
| Average payables payment period | 52 | 51 | 43 | 35 | 37 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 81 | 86 | 102 | 89 | 94 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, 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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 53 + 80 – 52 = 81
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Halliburton Co. cash conversion cycle improved from 2016 to 2017 and from 2017 to 2018. |