This website uses cookies to ensure you have the best experience. Learn more

Financial Analysis Of Halliburton

1503 words - 6 pages

In 2010, Halliburton produced revenue of $17,973 billion and operating income of $3,009 billion, reflecting an operating margin of approximately 17%. Revenue increased by $3,298 billion, or 22% from 2009, while operating income increased $1,015 billion, or 51% from 2009. According to Halliburton’s 2010 Annual Report, “these increases were due to its customers’ higher capital spending throughout 2010, led by increased drilling activity and pricing improvements in North America” (Hal 2010 annual report). However, Halliburton remains cautious because of the shifts in oil and natural gas prices and supply/demand factors. These “shifts” are important for equipment and services providers in the oil and gas industry because it affects the capital spending decisions of oil and gas producers as well. Major oil

companies and nationalized oil companies (known as the upstream producers) are the lifeblood
of the oilfield service industry. These upstream producers want high-growth and low-cost opportunities (Glickman). It is therefore necessary for Halliburton to evaluate its performance and analyze its financial position compared to other companies in the industry in order to be prosperous and successful.
Important factors of a company’s outlook are its financial strength and weaknesses. These factors can be evaluated by reviewing the firm’s financial statements and using ratios to help measure a company’s liquidity, leverage, activity, profitability, and growth. Financial ratios are computed by using the information found in a company’s financial statements: primarily income statement and balance sheet. The calculations from the current year, previous years, and other companies in the industry are used as a basis to identify and evaluate an organizations strengths and weaknesses. By using this type of comparison, the ratio analysis can provide dimension to the overall financial situation of the company (David 108).
Several financial ratios can be considered when looking at a company’s economic performance. However, given all the possibilities it is important to focus on a few key areas that are functionally related. Therefore, for the purpose of analyzing Halliburton’s financial position as well as its competitors, some common ratios can be used such as current ratio, debt-to-total assets, inventory turnover, average collection period, net profit margin, and return on total assets (ROA).
The first ratio to evaluate is the Current Ratio, which is calculated as current assets divided by current liabilities. Halliburton’s 2010 current ratio is 3.22, which improved from 2.99 in 2009 and from 2.66.in 2008. This ratio shows that Halliburton has a strong increasing liquidity and is in much better shape than its competitors. Baker Hughes has a 2010 current ratio of 2.77

and Schlumberger has a 2010 current ratio of 1.67. Therefore, Halliburton is in a better financial
position to meet its short-term obligations.
The second ratio to evaluate...

Find Another Essay On Financial Analysis of Halliburton

Financial Analysis Of McDonalds

2148 words - 9 pages Most anyone driving with a young child in their car is familiar with McDonalds. Once that child sees those trademark golden arches out the car window, you will likely be stopping in for a happy meal with a toy inside. But does this mean that the company is a good investment for your hard earned money? That is what we will explore in this paper. We will look into the stock and financial statements of McDonalds and their closest competitors to do

Financial Analysis of Greencore

3309 words - 13 pages over 6 million Christmas cakes a yearGreencore bakes 80 million Pizza bases per year and tops 50 million Pizzas per year, which staked on top of each other would rise to the equivalent height of 170 Mount Everest's.SWOT Analysis on Greencore Group PlcStrengths Weaknesses1. Merger of two divisions into one convenience foods division 1. Slow growth rates in convenience food markets2. Diverse product range and strong market positioning 2. Decreasing

Analysis of Financial Statements Simulation

979 words - 4 pages Analysis of Financial PAGE \* MERGEFORMAT 1 Running head: ANALYSIS OF FINANCIAL STATEMENTS SIMULATIONAnalysis of Financial Statements SimulationUniversity of PhoenixAnalysis of Financial Statements SimulationThis paper will answer two questions concerning the Analysis of Financial Statements Simulation. The first answers how the manager of Panorama should decide the relative importance of the five categories of financial ratios when assessing

Analysis of Insurance Financial Statements

1806 words - 7 pages unexpected losses, a firm can free up premium funds for use in other financial operations and increased profitability. In my report, Discover Company had the highest amount of incurred losses (not including LAE), but their Pure Loss Ratio was second highest to Drivers Company. This is because Drivers does a much smaller amount of business compared to Discover Company in earned premiums. Daily Underwriters of America had the lowest Pure Loss Ratio as

Financial Ratio Analysis of Microsoft

889 words - 4 pages long-term investments as to their shareholders' pocket. Microsoft has good financial standing and controls a lot of the computer industry.2.Efficiency RatiosAsset turnover ratio and net income per employee are good measures for a company's efficiency. The former ratio shows management's ability to use assets to produce sales, while the latter indicates the employee's productivity. If either of these two ratios is low, inefficiency may be an

The Financial Analysis of IHG

4851 words - 19 pages company might be retaining a large proportion of profits to reinvest. If compared to IHG, Millennium has a better going concern because of the lower percentage of dividend yield.7. Trend AnalysisThe trend analysis below shows the trend of the financial ratios and the component from the financial statements of IHG. All of the data was organized in tables form and graphs were generated to illustrate the trend in lines.7.1 Return on Equity (RE

Financial Analysis of Cyberguard Corporation

5559 words - 22 pages ) e) Acquisition of WebWasher AG, net cash acquired: $(8,166) Major Financing Activities in 2004: (In Thousands) a) Proceeds from Stock Option Exercised: $4,819 b) Proceeds from Warrant Conversion: $857 c) Proceeds from Issuance of Common Stock in Stock Purchase Plan: $167 3. a) Financial Leverage Ratio: This ratio measure the relationship between total assets and stockholder's capital that

Financial Analysis Of General Electric

1861 words - 7 pages General Electric Company (GE) is a diversified technology, media and financial services company. With products and services ranging from aircrafts engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves in more than 100 countries. This analysis will use financial ratios to see just how GE is performing as a Fortune 500 company

Financial Analysis of IWP Ireland

3005 words - 12 pages Financial SynopsisBRIEF: For the six months ended 30 September 2004, IWP International PLC's total revenue decreased 9% to EUR90.7M. Net loss applicable to ordinary shareholders decreased 1% to EUR4.9M. Revenues reflect lower Constance Carroll export sales and market pressure in UK fragrance business. Lower net loss reflects decreased losses from amortisation of goodwill, legal and advisor costs and reorganisation expensesAgreement with Lending

Financial Analysis of Starbucks Corporation

1085 words - 4 pages short-term financial). Starbucks’ current cost of debt as of Sept 7, 2013 is 3.85% with current tax rate in 2013 is 32.26%. Starbucks current debt after tax will be Cost of Debt Before Tax * (1 – Tax Rate)= 0.0385 x (1-0.3226) = 2.61%. Starbucks has a Cost of Equity or R Equity of 7.69% and expect a return of 3.51% per-year average over the long term. With all the data, Investor can calculate the weighted average cost of capital of Starbucks

Financial Analysis of Nielsen Holdings - Managing Financial Resources - Essay

4392 words - 18 pages Trend 12 Return on Assets Trend 12 PEER GROUP ANALYSIS 13 Total Return Performance 14 Dividend Quality Analysis 14 RISKS RELATED TO NIELSEN 16 CONCLUSION 18 REFERENCES 19 INTRODUCTION The main purpose of this report is to evaluate and research the financial information about Nielsen Holdings during the past five years to evaluate the future developing of the company. The report is reviewing whether the combination of operating performance

Similar Essays

Analysis Of Financial Statement

579 words - 2 pages determine return on investment and the return on equity. Price/Earnings ratio is another way to measure a company’s profitability by dividing the market price of a common share of stock by the earnings per share. The P/E ratio tells us the value of a company’s common stock. Dividend pawet ratio and the dividend yield are some other ways to judge a company’s profitability. Debt, or financial leverage is the last category of ratio analysis used to find the

Financial Analysis Of Amazon

641 words - 3 pages retail business can be successful. Recently there have been observations of whether Amazon is steadily keeping up with the fast pace of the online retail industry, or if they have hit their peak of innovation and will slowly dwindle away. A financial analysis of Amazon can prove that they are steadily keeping up in the fast paced online retail industry and that their long term goals are indicative to their new innovations. Amazon’s long term

Financial Analysis Of Project

1336 words - 5 pages MemorandumDate:February 6, 2009To:CEO, Superior Living Inc.CC:CFO, Superior Living Inc.From:XYZSub.:Project EvaluationIntroductionThe Memo is related to the evaluation of the project on the basis of the profitability. The financial pros and cons are included in the analysis, which can occur due to its going public and introducing a new production plant. The company has various options like use of debt source or other source, management's

Analysis Of Financial Statements

2370 words - 9 pages Analysis of Financial PAGE \* MERGEFORMAT 1 Running head: ANALYSIS OF FINANCIAL STATEMENTSAnalysis of Financial StatementsYolanda Cannon, Tiffany Nicole Jackson & Karmisha WomackUniversity of PhoenixFinancial Analysis for Managers IFIN/324Robert Fencl10 May 2007Analysis of Financial StatementsFinancial statements or reports are records of a company's financial transactions. They determine the profitability of a company's finances in the