Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Halliburton Co. pages available for free this week:
- Income Statement
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Halliburton Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
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).
- Gross Profit Margin
- The gross profit margin exhibited a clear downward trend from the first quarter of 2015 through the end of 2016, declining from 16.13% to a low of 5.44%. Starting in 2017, the margin showed a gradual recovery, increasing steadily to 13.14% by the third quarter of 2018 before a minor dip to 12.44% in the last quarter analyzed.
- Operating Profit Margin
- The operating profit margin declined sharply over the period from early 2015 to late 2016, turning negative in the fourth quarter of 2015 and reaching a trough of -42.66% at the end of 2016. Following this, the margin improved substantially beginning in 2017, rising from -21.89% in the first quarter to positive territory by mid-2017 and continuing upward to 10.28% by the end of 2018. This indicates a significant operational turnaround.
- Net Profit Margin
- The net profit margin trend closely mirrors the operating margin with a decline from 6.86% in early 2015 to a negative peak of -36.27% by the end of 2016. A recovery phase started thereafter, with margins fluctuating around zero in 2017 and early 2018. The margin reached a positive 6.9% by the last reported quarter, reflecting improved profitability after a period of losses.
- Return on Equity (ROE)
- Return on equity experienced a significant decrease throughout 2015 and 2016, descending from 14.34% to as low as -61.25% by the end of 2016. This suggests substantial declines in shareholder returns during this period. Starting in 2017, ROE gradually improved, becoming slightly positive in mid-2017, though it remained volatile before achieving a strong recovery to 17.39% at the end of 2018.
- Return on Assets (ROA)
- Return on assets followed a similar pattern, dropping from 7.31% early in 2015 to a negative range around -21% by late 2016. Partial recovery occurred during 2017 and 2018, with ROA fluctuating near zero before ascending to 6.37% by the last quarter reported. This reflects an enhanced efficiency in asset utilization following a period of negative returns.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross profit | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| SLB N.V. | |||||||||||||||||||||
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).
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 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data over the given period reveals distinct trends in revenue, gross profit, and gross profit margin. There are notable phases of decline, recovery, and stabilization evident in the figures.
- Revenue
- Revenue started at a high level of 7,050 million USD in the first quarter of 2015 and demonstrated a consistent downward trajectory through to the fourth quarter of 2016, reaching a low point around 3,833 to 4,021 million USD. From early 2017 onwards, revenue showed a steady recovery, increasing gradually to peak near 6,172 million USD by the third quarter of 2018. Towards the end of 2018, there was a slight decline observed in the fourth quarter.
- Gross Profit
- Gross profit mirrored the decline in revenue from 765 million USD in early 2015 to a trough of approximately 103 million USD by the middle of 2016. After this period, gross profit displayed an upward trend, climbing back above 800 million USD in the last quarter of 2017, before experiencing some fluctuations but largely maintaining levels above 650 million USD through 2018. This recovery aligns with the revenue improvement noted in the same period.
- Gross Profit Margin
- The gross profit margin showed a marked contraction from 16.13% in the first quarter of 2015 to a low near 5.32% by the first quarter of 2017. This decline indicates a reduction in profitability relative to revenue during this period. However, from early 2017, the margin steadily improved, reaching above 13% by the third quarter of 2018. There was a minor decrease in margin toward the end of 2018, but overall the gross profit margin recovery was strong, suggesting enhancements in operational efficiency or cost management concurrent with the revenue rebound.
Overall, the data illustrates a cycle of significant contraction in both revenue and profitability metrics during 2015 and 2016, followed by a recovery phase starting in 2017, which brought performance closer to mid-2015 levels by the end of 2018. The improvements in gross profit margin alongside revenue recovery highlight a positive shift in the company's earnings quality and operational leverage during the latter part of the reported period.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating income (loss) | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| SLB N.V. | |||||||||||||||||||||
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).
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 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in the company's operating income, revenue, and operating profit margin over the examined quarters from March 2015 through December 2018. The analysis highlights trends in operational performance and profitability.
- Operating Income (Loss)
- The operating income shows high volatility over the period. Initially, the company experienced a loss of $548 million in the first quarter of 2015. Subsequently, the figure turned positive for the remainder of 2015, peaking at $254 million midyear but stabilized at lower values by year-end. A significant downturn occurred throughout 2016, with losses worsening dramatically, reaching a low of -$3,880 million in the second quarter. From late 2016 onwards, the operating income gradually recovered, transitioning back to positive territory by 2017. The upward trend continued into 2018, with operating income consistently above $300 million and peaking near $789 million in the middle of the year before slightly moderating.
- Revenue
- Revenue declined steadily from the beginning of 2015 through mid-2016, falling from $7,050 million to approximately $3,835 million, indicating contraction in top-line sales. Starting in the latter half of 2016, revenue showed signs of stabilization and gradual recovery, increasing periodically through 2017 and 2018. Despite some quarter-to-quarter variability, revenue rose to a level near $6,172 million in the third quarter of 2018 before a slight decrease at the end of the year.
- Operating Profit Margin
- The operating profit margin followed a similar pattern to operating income. It began positively in early 2015, although declining throughout that year, turning negative by the end of 2015. The margin deteriorated significantly during 2016, reaching nearly -43% at year-end, reflecting severe operational challenges and inefficiencies. Improvements were observed starting in 2017, with margins recovering into positive percentages and continuing a steady ascent through 2018. By the final quarter of 2018, the margin neared 10.3%, suggesting improved profitability and operational control relative to revenue.
Overall, the analysis suggests that the company underwent a period of substantial financial distress and contraction during 2015 and 2016, characterized by declining revenues and large operating losses. However, from 2017 onwards, there was a sustained recovery phase marked by increasing revenues, positive operating income, and improving profit margins, indicating effective operational adjustments and market conditions conducive to growth and enhanced profitability.
Net Profit Margin
Halliburton Co., net profit margin calculation (quarterly data)
| Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to company | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| SLB N.V. | |||||||||||||||||||||
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).
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 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the examined periods. Revenue exhibited a declining trend from early 2015 through 2016, reaching its lowest points during mid-2016. Subsequently, revenue began to recover steadily from early 2017, peaking by the end of 2018, though not fully reaching initial 2015 levels.
Net income showed considerable volatility across the periods. Initial quarters from 2015 reflected mixed results, with net losses and gains fluctuating. A significant downturn occurred in 2016, with substantial losses reaching their most severe point in mid-2016. The series of losses was interrupted by occasional gains, but overall hovered in the negative territory during this period. From 2017 onwards, the company displayed a recovery trend in net income, transitioning to positive results more consistently by the end of 2017 and maintaining profitability through 2018, with a notable increase in the last quarter of 2018.
The net profit margin mirrored these dynamics closely. In 2015, margins were positive though declining, turning negative by the end of that year and worsening sharply in 2016 in line with the net losses. The middle of 2016 represented a low point with margins well below negative 30%. Recovery in net profit margin began in 2017, fluctuating around break-even points in some quarters but improving gradually into positive territory by late 2017 and early 2018. The upward trajectory culminated in a substantial positive margin nearing 7% by Q4 2018.
- Revenue Trends
- Declined significantly from early 2015 to mid-2016, lowest values recorded in this timeframe.
- Recovered steadily beginning in early 2017 through 2018, peaking late 2018.
- Net Income (Loss) Behavior
- Highly volatile with alternating positive and negative results early on.
- Large net losses in 2016, with some intermittent gains.
- Consistent recovery from 2017 onwards, reaching positive levels in most quarters of 2018 and culminating in strong gains by the end of 2018.
- Net Profit Margin Evolution
- Positive but declining in 2015, shifting into negative territory late 2015 and worsening sharply in 2016.
- Margins began improving in 2017, transitioning back to positive values by late 2017/early 2018.
- Strong positive margin recorded by the end of 2018, indicating improved profitability.
In summary, the company experienced a challenging period marked by declining revenues and profitability through 2016, followed by a gradual and sustained recovery from 2017 leading to improved financial performance by the end of 2018.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to company | |||||||||||||||||||||
| Company shareholders’ equity | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| SLB N.V. | |||||||||||||||||||||
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).
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 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial performance exhibits notable volatility over the analyzed periods, particularly evident in net income attributable to the company and return on equity (ROE). Shareholders’ equity displays a more gradual trend but reflects impacts from operational results.
- Net Income (Loss) Attributable to Company (US$ in millions)
- The net income figures demonstrate significant fluctuations, with several quarters showing negative performance interspersed with positive results. The first quarter of 2015 began with a substantial loss, followed by a modest positive income in the subsequent quarter. This oscillation continued throughout 2015 with negative income persisting and intensifying sharply from early 2016, peaking with sizable losses in the first half of that year. A brief improvement occurred in late 2016 into 2017, where positive net income appeared intermittently. However, losses resurfaced towards the end of 2017. In 2018, a recovery trend is observed with consecutive quarters of increasing positive net income, culminating in a strong fourth quarter.
- Company Shareholders' Equity (US$ in millions)
- Shareholders' equity demonstrates a declining trend beginning in 2015 and spanning into 2017. The decrease is relatively steady, suggesting that the cumulative effect of losses and other factors eroded equity over these periods. However, from early 2017 onwards, equity stabilizes with minor fluctuations and shows signs of modest recovery towards the end of 2018. This pattern aligns with the improved net income figures observed during this period.
- Return on Equity (ROE, %)
- ROE reflects the profitability relative to shareholders’ equity and exhibits marked variability, often corresponding with the fluctuations in net income. The first half of 2015 shows positive ROE, which quickly deteriorates into negative territory by the end of 2015, hitting steep negative values through much of 2016. The lowest ROE levels occur in 2016, indicating significant inefficiency in generating returns for shareholders. The early part of 2017 maintains a negative ROE trend, though with less severity, followed by oscillation between slightly positive and negative values through the end of 2017. A notable rebound emerges in 2018, with ROE increasing steadily and culminating in a significantly positive value by the fourth quarter, coinciding with the improved profitability and stabilization of equity.
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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to company | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| SLB N.V. | |||||||||||||||||||||
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).
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 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Company
- Over the observed periods, net income displayed significant volatility with sizable losses and gains. The year 2015 began with a substantial loss in the first quarter, followed by a slight recovery mid-year but reverted to losses by year-end. The downward trend intensified sharply in the first half of 2016 with substantial losses, including the largest recorded loss in this timeframe. A marginal improvement was observed towards late 2016 but remained negative overall. Starting in 2017, the net income showed initial weakness with negative or minimal positive values but depicted a more consistent recovery in 2018, culminating in notably positive results by year-end.
- Total Assets
- Total assets experienced fluctuations but showed a general declining trend over the period. After starting near $30.6 billion in early 2015, assets peaked late in 2015, but from 2016 onwards, there was a clear decrease, reaching a low point in early 2017. Subsequent quarters up to the end of 2018 reflected stabilization with slight incremental increases but assets remained significantly below the peak levels recorded in 2015.
- Return on Assets (ROA)
- Return on assets exhibited a pattern consistent with the net income trajectory. Initially positive at the start of 2015, ROA fell sharply into negative territory throughout 2016, corresponding to the period of severe net losses. In 2017, the metric began to recover from deeply negative levels, moving towards slight positive values sporadically but fluctuating below or near zero. By the last quarter of 2018, ROA improved markedly, reaching the highest positive point in the dataset, reflective of improved profitability and asset utilization.
- Overall Financial Trends and Insights
- The period under review reflects substantial financial challenges marked by significant net losses and declining asset base primarily during 2015 and 2016. The negative ROA during this interval confirms the diminished efficiency and profitability in asset use. However, evidence from 2017 and 2018 indicates a recovery phase with stabilized assets, positive net income growth, and improved ROA, suggesting enhanced operational performance and financial health in the later periods.