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

|    |                                                              |                                                           |                        |        |    |        |    |        |
|---:|:-------------------------------------------------------------|:----------------------------------------------------------|:-----------------------|:-------|:---|:-------|:---|:-------|
|  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





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

|    |                                                                                                  |                                                 |             |         |    |        |
|---:|:-------------------------------------------------------------------------------------------------|:------------------------------------------------|:------------|:--------|:---|:-------|
|  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







Question: Evaluate Halliburton's receivables turnover ratio from 2021 to 2023 and discuss its implications on the company's credit policies and collection efficiency.
Answer: The increasing receivables turnover ratio from 3.31 in 2021 to 4.85 in 2023 indicates that Halliburton has improved its efficiency in collecting receivables. A higher receivables turnover ratio suggests that the company is collecting its receivables more quickly, which can be a sign of effective credit policies and efficient collection processes. This improvement can positively impact the company's cash flow and reduce the risk of bad debts.