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: What does the Days Payable Outstanding (DPO) metric reveal about Halliburton's payment practices over the period from 2021 to 2023?
Answer: 
The DPO has decreased from 85.8 days in 2021 to 61.5 days in 2023. This reduction in DPO indicates that Halliburton has been paying its suppliers more quickly over the years. A lower DPO is generally favorable as it suggests that the company is able to settle its payables in a timely manner, which can strengthen supplier relationships and potentially lead to better credit terms. However, it is also important to consider the company's cash flow and liquidity position, as paying suppliers too quickly may impact the company's cash reserves. Overall, the improvement in DPO reflects positively on Halliburton's payment practices and its ability to manage its supplier relationships effectively.