Financial Analysis : Halliburton Company

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Halliburton Company “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. “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,
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