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: How does Halliburton's solvency position in 2023 compare to 2022 based on the Debt Equity Ratio?
Answer: Method 1:
To compare Halliburton's solvency position in 2023 to 2022 based on the Debt Equity Ratio, we need to calculate the ratio for both years.

For 2023:
Total Debt = $13,244 million
Shareholders' Equity = $9,433 million
Debt Equity Ratio = $13,244 million / $9,433 million ≈ 1.40

For 2022:
Total Debt = $13,273 million (sum of current liabilities $5,345 million and long-term debt $7,928 million)
Shareholders' Equity = $7,977 million
Debt Equity Ratio = $13,273 million / $7,977 million ≈ 1.66

Comparing the two years, the Debt Equity Ratio decreased from 1.66 in 2022 to 1.40 in 2023. This decrease indicates an improvement in Halliburton's solvency position, as the company has reduced its reliance on debt relative to equity. A lower Debt Equity Ratio suggests a stronger financial position with less financial risk, as the company is less leveraged and has a higher proportion of equity financing. This improvement reflects positively on Halliburton's financial stability and its ability to manage its debt levels effectively.


Method 2:
Debt-to-Equity Ratio Calculation:

For 2023:

Total Debt = $7,636 million (based on long-term debt only)
Shareholders' Equity = $9,433 million
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity = $7,636 / $9,433 ≈ 0.81
For 2022:

Total Debt = $7,928 million (based on long-term debt only)
Shareholders' Equity = $7,977 million
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity = $7,928 / $7,977 ≈ 0.99