Financial Analysis Halliburton Company - 1354 Words

Halliburton Company â€Å"Financial analysis consists of the quantitative and qualitative aspects of measuring the relative financial position among firms and industries† (Gibson, 2014, p.216). The analysis provided throughout this work will consist of a vertical and horizontal analysis of both the income statement and balance sheet for Halliburton Company. Based on the findings and assumptions made from the results of the data and investigation through the managers notes and other resource to conclude the reasons behind the results eight different ratios will be calculated and discussed as they relate to financial well being of Halliburton Company or financial flaws of the company as represented in the calculations and research. Once the vertical, horizontal, and eight financial ratios have been calculated, researched and discussed the calculation of Halliburton’s creditworthiness will be measured by Altman’s Z-score. Horizontal Analysis Income Statement and Balance Sheet Halliburton Company’s total revenues increased by just over 18% from 2011 to 2013 but the cost of revenue increased by over 25% in the same three-year period. These increase in both categories have resulted in a 11% decrease in gross profit. Operating income is a concern for Halliburton Company over the three-year period decreasing by over 34% in the time frame. â€Å"Operating income in 2013 was negatively impacted by $1.0 billion per-tax Macondo-related loss contingency, as compared to a $300 million, pre-tax,Show MoreRelatedFinancial Analysis of Halliburton Essay1517 Words   |  7 Pages In 2010, Halliburton produced revenue of $17,973 billion and operating income of $3,009 billion, reflecting an operating margin of approximately 17%. Revenue increased by $3,298 billion, or 22% from 2009, while operating income increased $1,015 billion, or 51% from 2009. According to Halliburton’s 2010 Annual Report, â€Å"th ese increases were due to its customers’ higher capital spending throughout 2010, led by increased drilling activity and pricing improvements in North America† (Hal 2010 annual report)Read MoreExecutive Summary : Halliburton Company1662 Words   |  7 PagesExecutive Summary Halliburton Company provides a range of services and products for the exploration, development and production of oil and natural gas to oil and gas companies worldwide. As there have been many changes in the various financial statements for Halliburton there was a need for a balanced score card. The Balance score card will help Halliburton improve its performance and ensure that it is performing as per its vision and mission. 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