HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 45: 

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|---:|:-------------------------------------------------------------------------------------------------|:------------------------------------------------|:------------|:--------|:---|:-------|
|  1 | HALLIBURTON COMPANY Consolidated Balance Sheets                                                  |                                                 |             |         |    |        |
|  2 |                                                                                                  |                                                 | December 31 |         |    |        |
|  3 | Millions of dollars and shares except per share data                                             | 2023                                            | 2022        |         |    |        |
|  4 | Assets                                                                                           |                                                 |             |         |    |        |
|  5 | Current assets:                                                                                  |                                                 |             |         |    |        |
|  6 | Cash and equivalents                                                                             | $                                               | 2,264       |         | $  | 2,346  |
|  7 | Receivables (net of allowances for credit losses of $742 and $731)                               | 4,860                                           |             | 4,627   |    |        |
|  8 | Inventories                                                                                      | 3,226                                           |             | 2,923   |    |        |
| 11 | Other current assets                                                                             | 1,193                                           |             | 1,056   |    |        |
| 12 | Total current assets                                                                             | 11,543                                          |             | 10,952  |    |        |
| 13 | Property, plant, and equipment (net of accumulated depreciation of $12,064 and $11,660)          | 4,900                                           |             | 4,348   |    |        |
| 14 | Goodwill                                                                                         | 2,850                                           |             | 2,829   |    |        |
| 15 | Deferred income taxes                                                                            | 2,505                                           |             | 2,636   |    |        |
| 16 | Operating lease right-of-use assets                                                              | 1,088                                           |             | 913     |    |        |
| 17 | Other assets                                                                                     | 1,797                                           |             | 1,577   |    |        |
| 18 | Total assets                                                                                     | $                                               | 24,683      |         | $  | 23,255 |
| 19 | Liabilities and Shareholders' Equity                                                             |                                                 |             |         |    |        |
| 20 | Current liabilities:                                                                             |                                                 |             |         |    |        |
| 21 | Accounts payable                                                                                 | $                                               | 3,147       |         | $  | 3,121  |
| 22 | Accrued employee compensation and benefits                                                       | 689                                             |             | 634     |    |        |
| 23 | Income taxes payable                                                                             | 390                                             |             | 294     |    |        |
| 24 | Taxes other than income                                                                          | 370                                             |             | 349     |    |        |
| 25 | Current portion of operating lease liabilities                                                   | 262                                             |             | 224     |    |        |
| 28 | Other current liabilities                                                                        | 750                                             |             | 723     |    |        |
| 29 | Total current liabilities                                                                        | 5,608                                           |             | 5,345   |    |        |
| 30 | Long-term debt                                                                                   | 7,636                                           |             | 7,928   |    |        |
| 31 | Operating lease liabilities                                                                      | 911                                             |             | 791     |    |        |
| 32 | Employee compensation and benefits                                                               | 408                                             |             | 408     |    |        |
| 33 | Other liabilities                                                                                | 687                                             |             | 806     |    |        |
| 34 | Total liabilities                                                                                | 15,250                                          |             | 15,278  |    |        |
| 35 | Shareholders' equity:                                                                            |                                                 |             |         |    |        |
| 36 | Common stock, par value $2.50 per share (authorized 2,000 shares, issued 1,065 and 1,066 shares) | 2,663                                           |             | 2,664   |    |        |
| 37 | Paid-in capital in excess of par value                                                           | 63                                              |             | 50      |    |        |
| 38 | Accumulated other comprehensive loss                                                             | (331)                                           |             | (230)   |    |        |
| 39 | Retained earnings                                                                                | 12,536                                          |             | 10,572  |    |        |
| 40 | Treasury stock, at cost (176 and 164 shares)                                                     | (5,540)                                         |             | (5,108) |    |        |
| 41 | Company shareholders' equity                                                                     | 9,391                                           |             | 7,948   |    |        |
| 42 | Noncontrolling interest in consolidated subsidiaries                                             | 42                                              |             | 29      |    |        |
| 43 | Total shareholders' equity                                                                       | 9,433                                           |             | 7,977   |    |        |
| 44 | Total liabilities and shareholders' equity                                                       | $                                               | 24,683      |         | $  | 23,255 |
| 45 |                                                                                                  | See notes to consolidated financial statements. |             |         |    |        |

HAL 2023 FORM 10-K | 45





, HALLIBURTON CO 10-K form for the fiscal year ended 2023-12-31, page 46: 

|    |                                                                              |                                                           |                        |         |    |       |    |       |
|---:|:-----------------------------------------------------------------------------|:----------------------------------------------------------|:-----------------------|:--------|:---|:------|:---|:------|
|  1 |                                                                              | HALLIBURTON COMPANY Consolidated Statements of Cash Flows |                        |         |    |       |    |       |
|  2 |                                                                              |                                                           | Year Ended December 31 |         |    |       |    |       |
|  3 | Millions of dollars                                                          | 2023                                                      | 2022                   | 2021    |    |       |    |       |
|  4 | Cash flows from operating activities:                                        |                                                           |                        |         |    |       |    |       |
|  5 | Net income                                                                   | $                                                         | 2,662                  |         | $  | 1,595 | $  | 1,468 |
|  6 | Adjustments to reconcile net income to cash flows from operating activities: |                                                           |                        |         |    |       |    |       |
|  7 | Depreciation, depletion, and amortization                                    | 998                                                       |                        | 940     |    | 904   |    |       |
|  8 | Deferred income tax provision (benefit)                                      | 196                                                       |                        | 70      |    | (486) |    |       |
|  9 | Impairments and other charges                                                | -                                                         |                        | 366     |    | 12    |    |       |
| 11 | Changes in assets and liabilities:                                           |                                                           |                        |         |    |       |    |       |
| 12 | Inventories                                                                  | (303)                                                     |                        | (642)   |    | (10)  |    |       |
| 13 | Receivables                                                                  | (257)                                                     |                        | (1,151) |    | (500) |    |       |
| 14 | Accounts payable                                                             | 49                                                        |                        | 852     |    | 795   |    |       |
| 15 | Other operating activities                                                   | 113                                                       |                        | 212     |    | (272) |    |       |
| 16 | Total cash flows provided by operating activities                            | 3,458                                                     |                        | 2,242   |    | 1,911 |    |       |
| 17 | Cash flows from investing activities:                                        |                                                           |                        |         |    |       |    |       |
| 18 | Capital expenditures                                                         | (1,379)                                                   |                        | (1,011) |    | (799) |    |       |
| 19 | Purchases of investment securities                                           | (492)                                                     |                        | (75)    |    | (5)   |    |       |
| 20 | Proceeds from sales of property, plant, and equipment                        | 195                                                       |                        | 200     |    | 257   |    |       |
| 21 | Sales of investment securities                                               | 131                                                       |                        | -       |    | -     |    |       |
| 22 | Proceeds from a structured real estate transaction                           | -                                                         |                        | -       |    | 87    |    |       |
| 24 | Other investing activities                                                   | (114)                                                     |                        | (81)    |    | (74)  |    |       |
| 25 | Total cash flows used in investing activities                                | (1,659)                                                   |                        | (967)   |    | (534) |    |       |
| 26 | Cash flows from financing activities:                                        |                                                           |                        |         |    |       |    |       |
| 27 | Stock repurchase program                                                     | (800)                                                     |                        | (250)   |    | -     |    |       |
| 28 | Dividends to shareholders                                                    | (576)                                                     |                        | (435)   |    | (161) |    |       |
| 29 | Payments on long-term borrowings                                             | (305)                                                     |                        | (1,242) |    | (700) |    |       |
| 30 | Proceeds from issuance of common stock                                       | 136                                                       |                        | 229     |    | 79    |    |       |
| 32 | Other financing activities                                                   | (126)                                                     |                        | (100)   |    | (56)  |    |       |
| 33 | Total cash flows used in financing activities                                | (1,671)                                                   |                        | (1,798) |    | (838) |    |       |
| 34 | Effect of exchange rate changes on cash                                      | (210)                                                     |                        | (175)   |    | (58)  |    |       |
| 35 | Increase / (decrease) in cash and equivalents                                | (82)                                                      |                        | (698)   |    | 481   |    |       |
| 36 | Cash and equivalents at beginning of year                                    | 2,346                                                     |                        | 3,044   |    | 2,563 |    |       |
| 37 | Cash and equivalents at end of year                                          | $                                                         | 2,264                  |         | $  | 2,346 | $  | 3,044 |
| 38 | Supplemental disclosure of cash flow information:                            |                                                           |                        |         |    |       |    |       |
| 39 | Cash payments during the period for:                                         |                                                           |                        |         |    |       |    |       |
| 40 | Interest                                                                     | $                                                         | 460                    |         | $  | 487   | $  | 517   |
| 41 | Income taxes                                                                 | $                                                         | 616                    |         | $  | 354   | $  | 214   |
| 42 |                                                                              | See notes to consolidated financial statements.           |                        |         |    |       |    |       |

HAL 2023 FORM 10-K | 46







Question: Analyze the Cash Flow to Debt Ratio for 2023 and its implications for Halliburton's debt management.
Answer: The Cash Flow to Debt Ratio is calculated by dividing operating cash flow by total debt. For 2023, the operating cash flow is $3,458 million, and total debt (sum of long-term debt and current portion of operating lease liabilities) is $8,547 million. This gives a Cash Flow to Debt Ratio of approximately 0.40. This ratio indicates that the company generates 40% of its total debt in cash from its operations. A higher ratio suggests better debt management and a stronger ability to service debt using cash generated from core business activities.