HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 43: 

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|---:|:-------------------------------------------------------------|:----------------------------------------------------------|:-----------------------|:-------|:---|:-------|:---|:-------|
|  1 |                                                              | HALLIBURTON COMPANY Consolidated Statements of Operations |                        |        |    |        |    |        |
|  2 |                                                              |                                                           | Year Ended December 31 |        |    |        |    |        |
|  3 | Millions of dollars and shares except per share data         | 2023                                                      | 2022                   | 2021   |    |        |    |        |
|  4 | Revenue:                                                     |                                                           |                        |        |    |        |    |        |
|  5 | Services                                                     | $                                                         | 16,483                 |        | $  | 14,749 | $  | 10,989 |
|  6 | Product sales                                                | 6,535                                                     |                        | 5,548  |    | 4,306  |    |        |
|  7 | Total revenue                                                | 23,018                                                    |                        | 20,297 |    | 15,295 |    |        |
|  8 | Operating costs and expenses:                                |                                                           |                        |        |    |        |    |        |
|  9 | Cost of services                                             | 13,402                                                    |                        | 12,381 |    | 9,745  |    |        |
| 10 | Cost of sales                                                | 5,256                                                     |                        | 4,603  |    | 3,534  |    |        |
| 12 | General and administrative                                   | 226                                                       |                        | 240    |    | 204    |    |        |
| 13 | SAP S4 upgrade expense                                       | 51                                                        |                        | -      |    | -      |    |        |
| 14 | Impairments and other charges                                | -                                                         |                        | 366    |    | 12     |    |        |
| 16 | Total operating costs and expenses                           | 18,935                                                    |                        | 17,590 |    | 13,495 |    |        |
| 17 | Operating income                                             | 4,083                                                     |                        | 2,707  |    | 1,800  |    |        |
| 18 | Interest expense, net of interest income of $81, $29, and $9 | (395)                                                     |                        | (463)  |    | (520)  |    |        |
| 19 | Loss on Blue Chip Swap transactions                          | (110)                                                     |                        | -      |    | -      |    |        |
| 20 | Argentina currency impact                                    | (131)                                                     |                        | (30)   |    | 6      |    |        |
| 21 | Loss on early extinguishment of debt                         | -                                                         |                        | (42)   |    | -      |    |        |
| 22 | Other, net                                                   | (84)                                                      |                        | (62)   |    | (34)   |    |        |
| 23 | Income before income taxes                                   | 3,363                                                     |                        | 2,110  |    | 1,252  |    |        |
| 24 | Income tax benefit (provision)                               | (701)                                                     |                        | (515)  |    | 216    |    |        |
| 27 | Net income                                                   | $                                                         | 2,662                  |        | $  | 1,595  | $  | 1,468  |
| 28 | Net income attributable to noncontrolling interest           | (24)                                                      |                        | (23)   |    | (11)   |    |        |
| 29 | Net income attributable to company                           | $                                                         | 2,638                  |        | $  | 1,572  | $  | 1,457  |
| 40 | Basic net income per share                                   | $                                                         | 2.93                   |        | $  | 1.74   | $  | 1.63   |
| 41 | Diluted net income per share                                 | $                                                         | 2.92                   |        | $  | 1.73   | $  | 1.63   |
| 46 | Basic weighted average common shares outstanding             | 899                                                       |                        | 904    |    | 892    |    |        |
| 47 | Diluted weighted average common shares outstanding           | 902                                                       |                        | 908    |    | 892    |    |        |
| 48 |                                                              | See notes to consolidated financial statements.           |                        |        |    |        |    |        |

HAL 2023 FORM 10-K | 43







Question: How does the Interest Coverage Ratio for Halliburton in 2023 reflect its ability to meet interest obligations?
Answer: The Interest Coverage Ratio is calculated by dividing EBIT (Earnings Before Interest and Taxes) by Interest Expenses. For Halliburton in 2023, the EBIT is $4,083 million, and the Interest Expense is $395 million.

Interest Coverage Ratio = EBIT / Interest Expenses = $4,083 million / $395 million ≈ 10.34

An Interest Coverage Ratio of 10.34 indicates that Halliburton earns over ten times its interest obligations. This high ratio suggests that the company is in a strong position to meet its interest payments comfortably. It reflects a low risk of default on interest payments, indicating good financial health and stability. A higher interest coverage ratio is generally favorable as it shows that the company generates sufficient earnings to cover its interest expenses multiple times over, reducing the risk for creditors and investors.