Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Halliburton Co., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Halliburton Co. gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Halliburton Co. operating profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Halliburton Co. net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Halliburton Co. ROE improved from 2016 to 2017 and from 2017 to 2018. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Halliburton Co. ROA improved from 2016 to 2017 and from 2017 to 2018. |
Gross Profit Margin
Halliburton Co., gross profit margin 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) | ||||||
| Gross profit | 2,986) | 2,265) | 864) | 2,520) | 5,340) | |
| Revenue | 23,995) | 20,620) | 15,887) | 23,633) | 32,870) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 12.44% | 10.98% | 5.44% | 10.66% | 16.25% | |
| Benchmarks | ||||||
| Gross Profit Margin, 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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 2,986 ÷ 23,995 = 12.44%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Halliburton Co. gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
Operating Profit Margin
Halliburton Co., operating profit margin 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) | ||||||
| Operating income (loss) | 2,467) | 1,362) | (6,778) | (165) | 5,097) | |
| Revenue | 23,995) | 20,620) | 15,887) | 23,633) | 32,870) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 10.28% | 6.61% | -42.66% | -0.70% | 15.51% | |
| Benchmarks | ||||||
| Operating Profit Margin, 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 profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 2,467 ÷ 23,995 = 10.28%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Halliburton Co. operating profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
Net Profit Margin
Halliburton Co., net profit margin 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) | |
| Revenue | 23,995) | 20,620) | 15,887) | 23,633) | 32,870) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 6.90% | -2.25% | -36.27% | -2.84% | 10.65% | |
| Benchmarks | ||||||
| Net Profit Margin, 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 profit margin = 100 × Net income (loss) attributable to company ÷ Revenue
= 100 × 1,656 ÷ 23,995 = 6.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Halliburton Co. net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
Return on Equity (ROE)
Halliburton Co., ROE 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) | |
| Company shareholders’ equity | 9,522) | 8,322) | 9,409) | 15,462) | 16,267) | |
| Profitability Ratio | ||||||
| ROE1 | 17.39% | -5.56% | -61.25% | -4.34% | 21.52% | |
| Benchmarks | ||||||
| ROE, 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
ROE = 100 × Net income (loss) attributable to company ÷ Company shareholders’ equity
= 100 × 1,656 ÷ 9,522 = 17.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Halliburton Co. ROE improved from 2016 to 2017 and from 2017 to 2018. |
Return on Assets (ROA)
Halliburton Co., ROA 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) | |
| Total assets | 25,982) | 25,085) | 27,000) | 36,942) | 32,240) | |
| Profitability Ratio | ||||||
| ROA1 | 6.37% | -1.85% | -21.34% | -1.82% | 10.86% | |
| Benchmarks | ||||||
| ROA, 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
ROA = 100 × Net income (loss) attributable to company ÷ Total assets
= 100 × 1,656 ÷ 25,982 = 6.37%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Halliburton Co. ROA improved from 2016 to 2017 and from 2017 to 2018. |